Titan 404
What you're saying is correct, noone will force companies to upgrade their processes and they certainly dont have to. If Joes Widgets can save $100,000 by not upgrading their equipment, and over the life of the plant that will cost them $50,000 in carbon taxes, well working that out is what the accountants are employed for.
What makes me think companies will pass on the costs or savings they make? Simple - outside of a monopoly/cartel situation, one company can pass on the savings, and offer their product cheaper, and people will buy it! For example, Eagle 86 can go to a cheaper cafe that isnt putting up the price of coffee by 50c a cup and hoping people will blame the carbon tax, leaving him more of his $10 to cover all of his weekly expenses. How he can cover the running costs of an aircraft as well out of that is an exercise for another day...
Towering Q Yeah, I thought the multiple places where ExxonMobil stated their support for a carbon tax as the best way to allow market forces to drive a reduction in carbon emissions was interesting, but it was hard enough writing my earlier posts from the iPhone and I couldnt fit everything in!
I saw the first impact of the carbon tax today though... looking through my first payslip for the financial year I paid $26 dollars less tax than on the last payslip of last financial year - that is, an extra $26 into my bank account on effectively the same taxable income (slight variations due to minor differences in hours worked, but insignificant here). The reason was due to the increase in the tax-free threshold to $18,000 as part of the other changes to the tax system in conjunction with the introduction of the carbon tax. Before I am accused of being a ultra-light glider pilot flying paper darts from a commune in Outer Tofuville - not that it should matter anyway - nope, lowly-paid turboprop FO with the assorted licences that go along with it
.