Will Australians accept a carbon price?
Some analysts believe the Australian prime minister's attempt to set a price on carbon will fail despite Julia Gillard yesterday declaring 2011 a year of delivery and decision for her Government.
The prospects of Australia having a carbon tax are now virtually zero following the Victorian state election according to John Roskam, the executive director of the free market think tank, Institute of Public Affairs.
"Rising electricity prices were a huge factor in the campaign, and a major reason the Brumby government lost office," he said.
"According to IPA research published last month, Melbourne's electricity prices have gone up 56 per cent between 2005 and 2010. Over that time general consumer prices went up 16 per cent."
"Some of the largest voting swings against the Brumby government were in Melbourne mortgage belt electorates where cost of living increases were hurting families."
Mr Roskam said a carbon tax would at least double the price of electricity. Given that the typical household electricity bill is $1,000, families would be hit hard by a carbon tax.
According to him, " It is now a political reality that her (Ms Gillard) attempt (to set a price on carbon) will fail."
Mr Roskam said a survey of 1,000 Australians commissioned by the Institute of Public Affairs in May confirms the message from the Victorian state election.
When asked how much they would be willing to pay in taxes to fight global warming, 61 per cent said they would pay either nothing or no more than $300.
'The evidence is clear. Australians will not accept a carbon price,' said Mr Roskam