Power prices would be lower under emissions trading scheme, outgoing public service head Martin Parkinson says: ABC News

The outgoing head of the Department of Prime Minister and Cabinet says power prices would be lower now if an emissions trading scheme had been implemented over a decade ago.

"Whatever else you do, Renewable Energy Target, or anything else, they can be no cheaper than putting an explicit price on carbon," Martin Parkinson told 7.30.

"The difference is where's the cost in an emissions trading scheme (ETS)? The cost is quite visible. It's there, it's the price of the permit.

"In the case of the Renewable Energy Target or any other intervention, then often that price is hidden from the view of the consumer. But ultimately the consumer's paying because it's built into the price of power.

"At the moment what we've got is a lot of burden falling on energy prices.

"If we had an ETS it would have smeared that cost across all parts of the economy."

Read the ABC News article 

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