Commission criticises green car fund

摘要

The Productivity Commission has criticised the $500 million Green Car Innovation Fund promised by Labor during last year's federal election. In a recent report titled Modelling economy-wide effects of future automotive assistance, the commission argued against subsidising the Australian automotive industry. How the fund would operate is still unknown, but it aims to promote the development of low-emission and fuel-efficient vehicles. The commission found that the fund "would have negative effects on productivity in the industry, and impose an economic loss on the economy overall" by encouraging manufacturers to build cars that would not have been commercially viable otherwise. Moreover, the fund would be redundant because the planned emissions trading scheme would provide sufficient incentive for environmentally-friendly cars and production methods, the commission said.