Gee the Australian hides it's political bias well doesn't it?
As far as I'm aware the Democrats imploded not because they positioned themselves to the left of Labor, but because the sold the country out with the GST and the electorate crucified them for it.
There's no right, left and centre in Australia any more. There's scary Christian ultra conservative, people who care about big business above all else, people who care about big business and are held by the short and curlies by the union structure, and people who give a rats about the environment (and social justice). That's the spectrum in play and it's not a linear spectrum, it's groups with differing values, not some political dogma to push.
After a decade of rule by a climate change denier, Rudd had a mandate from the Australian people to actually do something about the problem. Despite claiming to be a believer and having ministries for environment, climate change and water, in 3 years he did little to remedy any of the problems. The electorate told the ALP (well, both major's really) what they thought of their inaction.
the GST was one of the best economic policies ever enacted.
as far as climate change goes... lol that's a joke.
A; australia doesn't pollute SFA on the world scale
B; if you tax carbon, good luck getting investment. companies will just set up shop somewhere else. or go out of business. import tariffs you say? blocking australian people from buying products that are of benefit to them you say? that would only hurt the economy more. no more consumer surplus = no more capital structure from that point onwards.
C; irrespective of whether the world pollutes or not, australias best option is still to pollute our brains out and take the economic growth. otherwise known as a nash equilibrium, when our dominant (best) strategy doesn't change.
there are 4 outcomes to this:
everyone cuts down on carbon, and everyone loses wealth/economic riches/etc, but have cleaner air to breathe.
we cut down on carbon, and nobody else does, resulting in us both being poor as f**k and having dirty air to breathe (or whatever).
we don't cut down on carbon, and nobody else does, resulting in the same dirty air as above but the country isn't broke
or the final option, everyone else cut down on carbon but we don't, resulting in us having nice clean air and being filthy rich.
as you can see, irrespective of what everyone else does our best option is to just keep "destroying"
the environment.
additionally, you might realise, it doesn't matter whether australia cuts down on carbon or not. the other countries are not going to because their dominant strategy is also not to, irrespective of whether we do or not.
if, remarkably, all the countries in the world could agree to cut down on carbon, this agreement in itself would be unstable due to the tempation to screw everyone else over in order to take the riches.
the only time that there should be intervention is when the benefits of operating are lesser than the costs of doing so. i.e if a well pissed oil everywhere and the costs of cleaning it up were greater than the drop in the oil/fuel price that this new wells supply of oil created.
of course, that's all dependent on whether people actually want it cleaned up/care about the "externalities" of operating.
in my opinion, anyone that votes green truly has no clue about economics and game theory whatsoever. hell one of the first lessons in econ 101 from the head of the school was this exact lesson. it was our introduction to game theory. basically, "the greens are fucking clueless, and this is why".
what would be a better policy option for them would be to enable a tax writeoff of reducing carbon. i.e, a business can operate polluting or not, but if it takes the non-polluting option, and it CURRENTLY isn't the more cost effective way of operating (it often is) then they can write off 101% of the additional costs.
this would do two things. firstly it would create much more demand for "green" technology, and supply-demand would dictate the markets responses to it. engineering firms or whatever might start developing, investing in, engineering new things. scientific think-tanks or uni's might start looking more in this direction, etc etc.
additionally, this would result in better economies of scale for the producers of current green technologies.
the best current example of all this i can think of is the introduction of E85 fuel. that's got all the hallmarks.
it's cheaper per litre
it's new stuff that has been engineered/researched/etc
it's infinitely cleaner burning
it's made from waste products (sugar canes etc)
it can be retrofitted to virtually every fuel station and car in the country, at relatively low cost.
howards LPG converstion writeoff was a great policy. would be fantastic to see a similiar one for E85 - including the costs of installing the tanks/pumps for the servo's as well as us consumers with cars that need bigger/more durable fuel pumps and bigger injectors/a tune.