Let’s do a thought experiment. Let’s say Australia became the leader in clean energy technology. The go-to country. The place where all the world goes to buy their clean energy machines and technology.
Would that be cool?
Would it be profitable?
Would it create jobs?
Would it generate serious wealth for the nation?
I reckon it would.
So, why not do it?
Why not go for it?
Not just make a nice try but really go for it; all out?
Go at it with the same passion as a miner in the gold rush.
Not half-hearted but jump in with both feet.
After all, to become the “mecca” for clean energy would be like the gold rush. Amazing fortunes to be made and what a great way to generate wealth. By providing Australia and the rest of the world with clean energy technologies.
The ultimate product. Who wouldn’t want your product? And, wouldn’t you feel good (great!) about developing, manufacturing, selling and distributing clean energy systems around the world?
Why not right here in Australia? The world is clamoring for clean energy. All of Europe wants it. The USA says they want it. Hey, who knows, China might be interested.
Can you imagine being the “go-to” nation for China’s clean energy demands?
Might be a few quid in it … ya think?
And, what’s the government role?
Simple. I reckon there are 3 parts.
- First, set the goal. Just announce the goal to the nation and to the world. Set a date.
- Next, create the market incentives for creative, smart, hard working people to figure out the best way to reach the goal; design, develop, produce and manufacture, clean energy and associated clean energy technologies.
- Finally, the government then needs to get out of the way. Let the free enterprise market work on the problem. Let failures happen. No failures means nobody’s doing anything. Lot’s of failures indicates lots of progress. Success lies on the other side of failure. If you don’t allow failure, you don’t allow success. Success will come. Get out of the way and let it come!
Kind of like the gold rush. The miner’s know how to pan for gold. They know how to dig for it. They know how to find it. They don’t need to be taught, they figure it out. They don’t need government assistance to pay for “gold digging” school. They just go out there an do it. Whatever it takes to get the gold. They only way they won’t find gold is if it isn’t out there. But, if there’s gold, they’ll find it.
So, the question concerning “clean energy” is this … Do you believe clean and affordable energy alternatives are out there? Ready for creative minds to discover and develop? If so, then the “clean energy gold miners” will find it. All the government has to do is create the incentive – make it valuable (like gold) – and then – get out of the way!
How do you make “clean energy” valuable?
The carbon tax is a good start. It sends a strong message. If you pollute, you pay. If you dump carbon dioxide, carbon monoxide or any other pollutants into the atomosphere, it’s going to cost you. Just like it costs you to dump garbage at the tip. Same principle.
But, to have teeth, the tax should probably extend to all polluters, not just the top 500. I know this sounds a bit harsh but it can be offset by slashing other taxes. And, I do mean slashing. The revenue generated from a carbon tax would probably dwarf the taxes collected now, so there should be lots of room for “slashing.”
So, there’s your two pronged ecomomic attack. First, put a tax on dumping pollution into the atmosphere. And, next, cut taxes on most everything else.
Then all the government has to do is get out of the way!
What are your thoughts on the government role in the carbon tax proposal?