Invest
‘Technology, not taxes’: Why not both?
The government has joined the rest of the world in looking to offset carbon emissions, albeit through technology, not taxes, despite the possibility that positive taxes and incentives could potentially help Australia transition to net zero, two researchers have said.
‘Technology, not taxes’: Why not both?
The government has joined the rest of the world in looking to offset carbon emissions, albeit through technology, not taxes, despite the possibility that positive taxes and incentives could potentially help Australia transition to net zero, two researchers have said.
Prime Minister Scott Morrison continued his pledge to address global warming through technology, not taxes, in response to the damning report set out by the Intergovernmental Panel on Climate Change (IPCC), which suggested Australia could bear the brunt of climate change.
According to researchers, one of the key ways in which Australia could reduce its carbon emissions would be by transforming to more carbon-friendly vehicles and technologies.
Around the world, governments and automakers are promoting EV as a key technology to curb oil use and fight climate change.
During the 2020 presidential debate, Joe Biden pledged to transition the US away from the oil industry. Alongside Mr Biden’s pledge, Europe is fast becoming the driving force in its support for EV, pledging GBP 2.4 billion to help support this transition.
While various states around Australia have announced incentives for EVs, Australia’s federal government has only added $25 million in projects to accelerate the technological change.
Researchers Dr Diane Kraal and Dr Anna Mortimore from Monash Business School believe Australia could do more and catch up with the rest of the world, using both a technology and positive tax approach to increase EV production.
According to the researchers, transportation is responsible for nearly a fifth of Australia’s total CO2 emissions, with electric vehicles believed to play a paramount role in reducing these emissions.
As such, the two doctors believe Australia should target the business fleets, transforming them to cleaner energy, as “it would be a huge step forward in national energy reduction”.
“In 2020, Australian business fleets acquired mostly petrol and diesel vehicles, resulting in the sector producing a higher weighted average CO2 emissions, 185 grams of CO2 emission per kilometre, 41 per cent higher than Europe in 2018.
“Given business fleets make up the majority of passenger and light commercial cars on the road, we feel there’s greater impact in focusing on fleet vehicles,” Dr Kraal said.
Currently, Dr Kraal and Dr Mortimore are examining the increased take-up of battery electric vehicles or BEVs in fleets overseas, an area in which Australia lags behind much of the world.
“Currently, BEV technology is not affordable in Australia, and workplace charging infrastructure is either low or non-existent,” Dr Mortimore said.
“The UK, France, Germany, Denmark, Norway and Italy all have a significant penetration of BEVs, when compared to Australia, as a result of government tax support,” Dr Kraal adds.
The researchers added that the future of low emissions transport is BEV, and Australia needs to be ready.
“The Australian government has already acknowledged that business fleets are an effective pathway for early adoption of electric vehicles. However, there needs to be clear guidance on how to implement incentives and how new technologies will be treated from a taxation perspective for those that use their vehicles for business purposes,” Dr Kraal concluded.
About the author
About the author
Spending
Aussies’ spending on subscription rises, but will it stick?
Aussies carved out a greater slice of their spending budgets when it came to streaming services during the pandemic. ...Read more
Spending
Qantas announces $2.3bn loss but plans to be flying again by Christmas
Australia’s national carrier has revealed the devastating impacts border closures have had on the company, while noting a possible return date to international operations in its full-year market upd...Read more
Spending
Will your frequent flyer status be impacted by COVID?
In the latest bid to kick-start the travel industry post-lockdowns, Australia’s largest airline has announced that it is rewarding its frequent flyers by extending their status. ...Read more
Spending
Social media spending balloons to $118bn
Australians are spending a whopping $118 billion on discretionary items through social media and apps, fresh figures have revealed. ...Read more
Spending
Why payphones are set to become free
Australians will now be able to make free calls from any Telstra payphone under a new initiative aimed at helping those who are in need, Telstra’s CEO has revealed. ...Read more
Spending
7 surprisingly simple ways to save money and help the environment
The rising costs of living is providing consumers with a rare win-win scenario by saving money and helping the environment. ...Read more
Spending
How much are you wasting on unused subscriptions?
Australians are continuing to pay for subscriptions they are not using, costing households up to $2,000 a year, new banking figures have revealed. ...Read more
Spending
Viagogo under the microscope for ‘ripping off’ consumers
Viagogo is under investigation by Fair Trading after ticket scalpers have been accused of raking in excessive profits through the ticketing site. ...Read more
What to expect as the end of lockdown looms? Will the Stage 2 tax cuts boost your tax return? Where should investors be looking as the economy reopens?
Listen now
Could property prices inflate by another 20%? What’s happening in recent dividend announcements? Did your fund fail the YFYS test?
Listen now
What does the NSW regional permit mean for property investors? Who really wins from the BHP-Woodside merger?
Listen now
The sea and tree-change norm; Square’s acquisition of Afterpay; Why you should think twice before turning to TikTok for advice
Listen now
Spending
Aussies’ spending on subscription rises, but will it stick?
Aussies carved out a greater slice of their spending budgets when it came to streaming services during the pandemic. ...Read more
Spending
Qantas announces $2.3bn loss but plans to be flying again by Christmas
Australia’s national carrier has revealed the devastating impacts border closures have had on the company, while noting a possible return date to international operations in its full-year market upd...Read more
Spending
Will your frequent flyer status be impacted by COVID?
In the latest bid to kick-start the travel industry post-lockdowns, Australia’s largest airline has announced that it is rewarding its frequent flyers by extending their status. ...Read more
Spending
Social media spending balloons to $118bn
Australians are spending a whopping $118 billion on discretionary items through social media and apps, fresh figures have revealed. ...Read more
Spending
Why payphones are set to become free
Australians will now be able to make free calls from any Telstra payphone under a new initiative aimed at helping those who are in need, Telstra’s CEO has revealed. ...Read more
Spending
7 surprisingly simple ways to save money and help the environment
The rising costs of living is providing consumers with a rare win-win scenario by saving money and helping the environment. ...Read more
Spending
How much are you wasting on unused subscriptions?
Australians are continuing to pay for subscriptions they are not using, costing households up to $2,000 a year, new banking figures have revealed. ...Read more
Spending
Viagogo under the microscope for ‘ripping off’ consumers
Viagogo is under investigation by Fair Trading after ticket scalpers have been accused of raking in excessive profits through the ticketing site. ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
