And is a theory yet to be tested, which is of concern.
The consequences of the Durban Conference not increasing or even keeping the Kyoto Protocol limits will leave Australia exposed to influx of goods far cheaper than that can be produced in Aust. Also will impact on Australia's exports, but maybe not primary resources.
As for your friends in Honkers, my rent is cheaper, my food is cheaper, and it is cheaper to educate my kids in Aust than Honkers. Naive but happy.