Faustino,
Thank you for you’re your reply. I agree with all the points you make, (but should just correct this misunderstanding of one of my assumptions):
You said:
Peter, I can’t comment on the $3.5 tr figure. Your calculation assumes that this cost would be equally distributed on a per capita basis, which is most unlikely.
Actually, I assumed it would be equally distributed on a per GDP basis, not per capita. This would also be most unlikely, but would overestimate rather than underestimate Australia’s share because Australia’s share of world GDP will likely decrease as the century progresses and Asia’s share of world GDP increases. I was wanting to keep the analysis simple and overstate rather than underestimate the estimated benefits/costs.
Regarding the compliance cost, you might be interested in this, if you didn’t already see it: http://www.onlineopinion.com.au/view.asp?article=13578&page=0
I second your statement:
It would have been better to have had a CBA undertaken by the Productivity Commission, but the government obviously fears independent analysis by the PC (as with the NBN et al).