The price of most CO2-intensive products, such as oil, gas and electricity, etc., is in some cases raised by close proxies of direct carbon pricing, such as fuel taxes. In other cases, the price of such products is reduced by fossil fuel subsidies. Likely, the net impact of taxes and subsidies is close to zero. The absence of any significant carbon pricing has implications.
Beyond the direct price effects of the depreciation, over the longer-term the depreciation will, if sustained, encourage people and capital to move out of industries serving a primarily domestic market (such as residential construction and retailing), and into industries producing goods and services for export, or in competition with imports (such as agriculture, forestry, manufacturing, tourism, fishing, horticulture, viticulture, software, and so on).