Neither Prime Minister Rudd nor Opposition Leader Abbot sponsor policies that deal adequately with climate change challenges. Inevitably, the politics of funding gets in the way. A Eureka Street article by Peter Hodge points to a possible solution called the “Tobin Tax” – a tax on foreign currency transactions.
“Set at a tiny 0.005 per cent (the most commonly cited rate), the tax could collect around $76 billion each year, although estimates vary significantly. The funds could assist developing countries cope with the effects of climate change and finance the necessary technological adaptations; it is unlikely any legally binding climate agreement that includes most developing countries will be signed without such commitments.” (Hodge)
I guess it would be ever so slightly irritating for those of us who buy books on Amazon, but it would be a tax less worth grumbling about if we knew it was invested in constructive solutions to protect developing countries from the effects of climate change catastrophe.
Not that this alone would address our global ecological responsibilities – incentives for renewable energy sources and reduction of carbon emissions would still be on the table, but funding arguments would differ.
I wonder if economists and accountants who are much more qualified than I would be prepared to discuss the merits of such a solution?