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.
RELATED ARTICLES
About the author
About the author
Spending
Moneysmart study reveals Gen Z women more concerned about finances than men
A new research conducted by ASIC’s Moneysmart has unveiled the heightened levels of stress and concern regarding finances and the cost of living among Australian Gen Z women compared to their male ...Read more
Spending
The cost of politeness: Aussies out of pocket by $1,350 due to 'awkward tax'
It's the time of year when Australians dive into their pockets for festive events and gatherings, yet a recent study by PayPal suggests that many are too polite, or perhaps too embarrassed, to ask for ...Read more
Spending
Aussies can ‘NAB Now Pay Later’ with the last major bank to embrace BNPL
NAB has become the latest bank to enter the BNPL market. Read more
Spending
Aussie households spent $368 a week on transport after petrol price surge
Fuel costs have increased by 40 per cent over the past year, a new report from the Australian Automobile Association has revealed. Read more
Spending
Voters say reducing the cost of living should be the government’s top priority
Aussies have ranked high cost of living as the top issue that needs to be addressed by the next government. Read more
Spending
Bodies back Labor’s commitment to stronger BNPL regulation
All parties should commit to stronger regulations for the BNPL sector, according to Financial Counselling Australia. Read more
Spending
Household spending surges led by retail and recreation
Spending on retail, recreation and hospitality have continued to climb as COVID-19 case numbers and restrictions have eased. Read more
Spending
Banks extend financial assistance to flood-affected customers
A range of assistance is available from major banks to those impacted by flooding in NSW and Queensland. Read more
Spending
Moneysmart study reveals Gen Z women more concerned about finances than men
A new research conducted by ASIC’s Moneysmart has unveiled the heightened levels of stress and concern regarding finances and the cost of living among Australian Gen Z women compared to their male ...Read more
Spending
The cost of politeness: Aussies out of pocket by $1,350 due to 'awkward tax'
It's the time of year when Australians dive into their pockets for festive events and gatherings, yet a recent study by PayPal suggests that many are too polite, or perhaps too embarrassed, to ask for ...Read more
Spending
Aussies can ‘NAB Now Pay Later’ with the last major bank to embrace BNPL
NAB has become the latest bank to enter the BNPL market. Read more
Spending
Aussie households spent $368 a week on transport after petrol price surge
Fuel costs have increased by 40 per cent over the past year, a new report from the Australian Automobile Association has revealed. Read more
Spending
Voters say reducing the cost of living should be the government’s top priority
Aussies have ranked high cost of living as the top issue that needs to be addressed by the next government. Read more
Spending
Bodies back Labor’s commitment to stronger BNPL regulation
All parties should commit to stronger regulations for the BNPL sector, according to Financial Counselling Australia. Read more
Spending
Household spending surges led by retail and recreation
Spending on retail, recreation and hospitality have continued to climb as COVID-19 case numbers and restrictions have eased. Read more
Spending
Banks extend financial assistance to flood-affected customers
A range of assistance is available from major banks to those impacted by flooding in NSW and Queensland. Read more
