Monday, September 13, 2004

Australia: How Not to Subsidise Electricity

Australia's federal government has created a tax break for electricity generated using diesel lowering its cost by a third. Professor Andrew Blakers from the Australian National University believes the tax break worth over one billion dollars (U.S.) will encourage people living in rural areas to choose diesel over solar generated power.


Anonymous Anonymous said...

Interesting headline. Is there such a thing as a "good" subsidy?

Answer: The only good subsidy is the one that winds up in MY pocket. Whoever I am.

Subsidies create problems, not solutions.

Jason G. Williscroft
The Dead Hand

2:24 pm, September 12, 2004  
Anonymous Anonymous said...

Erm, one should also remember that there is an election on ATM in Australia and that the country voters are erm, apat to want their pound of flesh.

1:30 am, September 13, 2004  
Blogger James said...


Discussing whether there should be any subsidies is an in-depth socio-economic debate.

In the real world almost every government subsidises many things (e.g. army, police force, road building, waste management etc.)

My point is that reserves of non-renewable fossil fuels are being depleted fast. Therefore if subsidies are used, they should be used intelligently to encourage clean renewable energy sources.

Alternative Energy Blog

3:55 am, September 13, 2004  
Blogger KK4HFJ said...

Now if they would just plant a field of sunflowers, corn, or soy (even mustard) to produce vegetable oil to run those diesels, would any of us mind?

8:34 am, September 16, 2004  

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