the ‘cap-and-slice’ proposal actually resembles the public’s perception of how emissions trading works more closely than the CPRS. Three-quarters of respondents to a recent Australia Institute survey said that Australia’s total emissions would go down if every household reduced its electricity use. Only 13 per cent gave the answer that corresponds to the CPRS: that Australia’s total emissions would stay the same. At this critical policy juncture, it is worth considering the values underlying our response to climate change. If we are to meet the challenge, we must incorporate both co-operation and self-interest, collectivity and competitiveness.