Climate Change vs a Garrett Recession

As we get drawn closer to a federal election, the effects of Climate Change and the cost to the economy gets raised more and more frequently.

Today Howard is scare mongering the voting public with the possible effects a 20% cut in emissions would have on the economy.

“A 20 per cent cut from 1990 levels from 2020 would be the recipe for a Garrett recession, that is not a recession which Australia has to have,” Mr Howard said, echoing the infamous words of Labor’s last prime minister, Paul Keating.

However while these arguments continue, little mention is made about the wholesale price of electricity soaring due to the widespread drought, and a lack of water to cool power stations or run Hydro plant.

The Energy Users Association says spot prices in the national market have jumped by up to 270 per cent in the past 12 months, while wholesale contracts have risen as much as 100 per cent.

More on the topic here.

» PM holds off on emissions target – The Brisbane Times, June 3, 2007.
» High power prices squeeze manufacturers in Australia – Market Watch, 22nd May 2007.
» Power price rise alarms industry – The Advertiser, May 14th 2007.