Dr. Muireann Lynch:

The Senator has characterised it perfectly. It is about making the price of carbon reflect the cost of carbon. At present, when people decide to consume anything they weigh up the costs of paying for it versus the benefits of consuming it. At present, they weigh up the benefits of consuming carbon-related goods against the financial costs to them as individuals. If the carbon price is included then people would weigh it against the financial costs to themselves and the environmental costs because instead of imposing the environmental cost on the economy and people in general it would be on the person actually buying or consuming the carbon goods. Does that make sense?