One of the most persistent myths in Australian politics has been that providing household assistance undermines the effect of imposing a carbon price. If the prices of carbon-intensive products rise by $10 and you give me $10 in assistance, aren’t we back where we started?

Andrew Leigh’s AFR op-ed “The price is right for consumer shift “and Blog entry explains why providing household assistance doesn’t undermine the effect of introducing a carbon price.

http://www.andrewleigh.com/blog/?p=1183