Australia needs to brace for higher electricity rates and transport costs as soon as the government implements the carbon tax. This is one of the key results of the independent study made by the designated independent team the Productivity Commission.

The report of the Productivity Commission released on Thursday has taken into consideration the different climate change measure undertaken by Australia's top ten trading partners including China, Germany, India, Japan, New Zealand, South Korea, the United Kingdom and the United States.

The study revealed that emissions reduction schemes and other related carbon abatement measures did not bring down electricity consumption and petrol usage-two big factors of carbon pollution in Australia.

The study cited that in Germany and the United Kingdom emissions-reduction policies had boosted electricity prices by 12 and 17 percent and reduced emissions by 3 and 19 percent, respectively.

With these findings, the Productivity Commission has endorsed the Australian government's proposal to put a price tag on carbon emission, saying the method would be the most cost efficient among other schemes. Treasurer Wayne Swan had released the report to justify the carbon tax legislation being opposed by industry groups.

"Emissions trading schemes were found to be relatively cost-effective, while policies encouraging small-scale renewable generation and bio-fuels have generated little abatement for substantially higher cost," the report said.

In a related reaction to the said report, Australia's Greens Party said the report was proof that major countries were moving to transform their economies with a combination of carbon pricing and direct support for renewable industries.

"In a serious debate, this report would help finally put to rest the ridiculous notion that Australia might be moving ahead of the world in putting a price on pollution," Greens Deputy Leader Christine Milne said.

However, Senator Milne also criticised the report pointing out that "the commission had focused on short-term benefits from policies to cut carbon emissions while ignoring longer-term economic advantages." With reports from the Australian

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