It is often argued that Australians are paying the highest Carbon Tax in the world (also here). Australians are paying a Carbon Tax of $24.15 a tonne today. How does this compare to the rest of the world? Here are a few examples of higher or comparable carbon tax (often with emission trading on top):
- Sweden enacted a tax on the use of coal, oil, natural gas, petrol and aviation fuel used in domestic travel in 1991. The tax was 0.25 SEK/kg (US$100 per tonne of CO2) and was later raised to US$150.
- Norway introduced a CO2 tax on hydrocarbon fuels in 1991. The tax started at a rate of US$51 per metric ton of CO2
- Finland introduced the world’s first carbon tax in 1990. The price on carbon was A$29 per tonne of CO2 in 2010.
- Ireland, in the 2010 budget the country’s first carbon tax was introduced at approximately A$20 per tonne of CO2 emissions.
Perhaps $24.15 per tonne is among the highest but certainly not the highest. Also, even with a punishing carbon tax for decades, six times the current rate in Australia, the Swedish economic growth appears to be unaffected. Between 1990 and 2006, Sweden’s economy grew by 44-46 percent (approx 2,8% annually).