The author has been described by News Ltd as an "iconoclast", "Svengali", a pollie's "economist muse", and "pungently accurate". Fairfax says he is a "Renaissance man" and "one of Australia’s most respected analysts." Stephen Koukoulas concludes that he is "85% right", and "would make a great Opposition leader." Terry McCrann claims the author thinks "‘nuance’ is a trendy village in the south of France", but can be "scintillating" when he thinks "clearly". The ACTU reckons he’s "an enigma wrapped in a Bloomberg terminal, wrapped in some apparently well-honed abs."

Wednesday, September 29, 2010

Difference between a carbon tax and a carbon price?

In Macquarie's words:

"A carbon tax fixes the price of carbon and lets the quantity of emissions vary, as per the first chart opposite. The second fixes the quantity of carbon emissions and lets the price vary according to demand, as per the second chart opposite."

To put it visually...