Carbon Tax Hyperbolic Worries and Reality

Carbon Tax Hyperbolic Worries and Reality

By Dale Stam 18/10/11

Part One


‘I don’t think we are in Kansas anymore’ Asked Dorothy, breathing rapidly after crashing her house through a giant bubble.
‘Well no little girl, you are in Oz, and I’m afraid you went and broke our bubble’ said a Munchkin quickly before taking a large breath.
‘Why do you have a bubble around the whole land?’ Inquired Dorothy.
‘Well Dorothy it seems the merry old Land of Oz has implemented a tax on Carbon to keep the technicolour bright.’

Whether you like it or not, it seems that we will be implementing a Carbon Tax, this article will focus upon 5 hyperbole worries leading from the introduction of this Tax and tie them into the reality that spanned them. Just keep in mind, it could always be worse.

1. Electricity only supplied during peak hours.
The worry:
Electricity prices are going to go up with this tax. Why? Because Australia has a lot of coal which is made up of Carbon. You can’t eat it, you can’t wear it, its surface area is minuscule so it can’t be used as shelter, you can however do two things.
A) You can draw with it. It is messy and expensive, but that is all irrelevant because it has artistic merit, or
B) You can burn it, and provide heat.
We have developed B so that it boils water, which produces steam, which turns a turbine that gives electricity.

Now during peak hours, the vast majority of people are home from work and demand electricity, so for your share during this busy period you pay a higher rate. This is the section of the bill that is the highest, because the system is under the most stress, however after this period then it will have a long rest where preparations can be undertaken. This is the most lucrative section for energy companies, they would be able to reduce the amount of coal needing to be burnt because they did not need to provide electricity during off peak, or the unimportant people hours. Also because energy companies would not need to burn our dinosaur pals to supply energy for the minority, then they would release less CO2 into the atmosphere, and thus get taxed less. At $25 per tonne companies would be looking at ways to decrease the upcoming tax debt, and if they do this they are not passing the costs onto you, the consumer. Its win-win right?

How reality is almost there:
Electricity in the form that we imagine travelling the wires, does not store all that well. It is impractical for energy companies to charge up car batteries and then distribute them to everyone for personal use, not to mention astoundingly expensive. Solution, build a giant battery, but remember when your favourite song is half way through and your MP3 player beeps off dead. Batteries do not last long, are expensive, and only return roughly 2/3rds of energy placed within. But this has not stopped Australia from researching; currently we have a few avenues;
* Super batteries - they have worked for us in the past so just keep going, but making them more efficient and cheaper.
* Superconducting Magnetic Energy Storage (SMES) devices, which would use the dual relationship of electricity and magnets to create a perpetual field. Downside, it requires energy input to keep the magnets at the required temperature (relative to the beyond freezing temperatures of liquid nitrogen) to create the high quality superconducting effects.
* Mechanical or energy conversion - such as the turning of a windmill or turbine which can then release electricity with a hypothetical flick of the switch.

All of these various avenues will eventually lead to a realistic system that can be implemented and sustained at a country wide level. Then if we can store electricity we can also choose when it is released. So what leads to more efficiency of the company to save the electricity that they will be taxed on producing because of the essential fuel to start the process, could lead to them passing on the costs to the consumer, or the more likely the increasing of costs all around that people can only afford to use electricity when they need it, which would fall usually within the peak hours. If they can release electricity whenever they want, and the eventual demand will be during peak hours, why pay to have it flowing out during off peak hours. Who uses electricity after 8pm anyway?

Stay tuned for the other parts in upcoming posts.

If you liked this article you might enjoy my other article on the Carbon Tax;
http://dalesnewsblog.blogspot.com/2011/02/carbon-tax-and-what-it-means-for-you.html

Or continue onto part two of the worry;
http://dalesnewsblog.blogspot.com/2011/11/carbon-tax-hyperbolic-worries-and_10.html