Much has been written about the Prime Minister’s embrace of things green following the release of the Stern Report in the United Kingdom. Clearly the debate has benefited the Greens in the opinion polling (as can be seen in the next graph).

Interestingly, though, it did not translate into additional votes for the Greens in yesterday’s Victorian election. It will be interesting to see if (a) the Green’s Federal polling boost is sustainable, and (b) if it translates into Green primary votes at the next Federal election.
Let’s speculate as to why the Prime Minister has taken on a green hue. I suspect Andrew Bolt had it right on the Insiders this morning. Bolt argued that the Prime Minister was on a hiding to nothing being seen to oppose the environment, so he sought to change the terms of the debate: At what price are you willing to go green and how green are you prepared to go?
In popular mindset, the green recipe is to introduce disincentives on high greenhouse gas energy sources (eg. impose a carbon tax), provide incentives for electricity generation from alternative sources (wind, solar, tidal, geothermal, etc.), and introduce overall demand reduction measures.
There is little argument from anyone on encouraging demand reduction through, for example, better housing design, or a policy of turning the lights off overnight in city buildings. However, there is no stomach among politicians to use rationing to deal with growing demand. Can you imagine the outrage if politicians handled power shortages in the same way they handle water shortages: to tell the people living in even numbered residences that they can only use electricity on the even days of the month.
A carbon tax and encouraging alternatives are just as vexed. For starters, a carbon tax hits the mum and dad punters with higher electricity and petrol costs, it is a tax on industry and would slow the economy, and it would hit the hip pocket with higher costs on all manufactured goods. It is not an electoral winning strategy.
Alternative power sources have their own problems. Typically, they are either not reliable over the 24 hour cycle, significantly more costly than the carboniferous coal, not suited to Australia’s conditions and/or they cannot be scaled to match demand over the next 50 years. Put bluntly, they are not competitive with Australia’s substantial cheap coal reserves, without taxing individuals and industry.
Rather than an unfocused debate around the problem, the Prime Minister is seeking to shift the debate to the difficulties of finding a solution if we wish to maintain our high energy lifestyle. The Prime Minister appears to be arguing that if the greenhouse scenario is a disaster, and a carbon tax is the appropriate response, then nuclear power generation is both economically feasible and a sensible response to our electricity needs.
It is a discussion that wedges the Greens and Labor in their opposition to nuclear, and their absence of fully developed, sustainable and costed alternatives that are competitive. It is a tighter wedge for Labor than the Greens. Unlike the Greens, Labor actually wants to win government and so it does not want to be tarred with higher taxes and crack-pot energy ideas. While John Howard was not in the green camp, all Labor had to do was repeat its broad green policy commitment. Now Howard is in the green camp, political differentiation requires Labor to articulate strategies and not just broad policy positions on the environment.
I suspect the Prime Minister will keep the nuclear option on the table without actually embracing it - the Switkowsky report certainly gives the Prime Minister a lot of wriggle room in this regard. At the same time he will seek to force Labor and the Greens beyond platitudes to articulate specific (non nuclear) strategies that can be costed and critiqued. This tactic is likely to end in a stalemate that sees the coal-fired status quo continue unchallenged.
In summary: The Prime Minister is cactus if he does not recognise the general concerns in the public about green issues. He expects Labor and the Greens to be cactus if they are forced to say what they will actually do. It should be an interesting debate.