The government is going to compensate households for the rise in petrol prices caused by emissions trading. The question is how best to compensate people for the price increase?The government could experiment tomorrow by giving anyone who purchases petrol a shopper docket that they can redeem if they spend the money received on infrastructure to reduce emissions. If they can’t use the shopper docket themselves they can sell it to someone who is willing to do so. The likely value of shopper dockets will be about 75% of the face value of the docket.
The Federal government (or the ACT government) could start small in Canberra by returning 10 cents per litre of the excise currently collected. The system would decrease the price of fuel while at the same time diverting money to infrastructure to produce renewables or ways of saving energy. The infrastructure to implement this would happen overnight for no cost to the government as every petrol station will want to give their customers a discount. Renewable infrastructure projects that will accept dockets will appear immediately and companies will pay to participate. The government will still get to spend some taxes on renewables but the spending will be market driven not government directed.
If it works as expected it will provide a mechanism for the distribution of some of the money obtained from emissions permits trading towards infrastructure for renewables.

2 thoughts on “Letter to CT 25th July on shopper dockets

  1. Do you mean a scheme kind of like what Coles did about 15 years go with some kind of ‘dockets for computers’ scheme where school parents brought their shopping dockets into school and if the school got enough, they could earn a new computer… ?

    I suppose you could purchase solar panels for a community organisation with a few thousand of these petrol dockets.

    But otherwise it seems to be a bit of a messy process that relies on peoples’ altruistic motivation and goodwill. Can you explain it more?

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  2. Anne the scheme is similar to what you are saying. However, it is all electronic and it remains “real money” except it is tagged. This means you have a wide choice in how you spend your money and you can transfer it freely including sell it.

    In effect it directs investment and believe me 10 cents per litre on all petrol sold is a lot of money to invest in reducing greenhouse gases. Even better when you invest you will get a return on your money which is why you can sell your shopper dockets.

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