Mathias Cormann (WA, Liberal Party, Shadow Assistant Treasurer) Share this | Hansard source

asked the Minister representing the Treasurer, upon notice, on 18 August 2011:

With reference to the Treasury Carbon Tax modelling, Strong growth, low pollution: Modelling a carbon price:

Given Treasury modelling states in Chapter 3 on p. 53 that '…due to the inelastic nature of oil demand, after a threshold is reached, higher oil prices do not induce lower emissions'.

(1) Does this observation imply that it would be pointless (in emissions reduction terms) for the Government to allow its carbon tax on heavyvehicle transport fuels (which is to be in place by 2014-15) to continue to rise indefinitely, in line with the projected relentless rise of the carbon price in the Treasury modelling; if so, has Treasury advised the Government of this.

(2) Is an eventual unlinking of the transport fuels excise from the carbon price factored into Treasury's economic and fiscal modelling.