Economics of the Environment - Co2 emmission Written Tutoring

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Policies to reduce CO2 and other greenhouse gasses (GHGs) emissions are at the centre of the political debate. In 2012 the Australian government imposed a carbon tax aimed at reducing emissions of CO2 from the power sector and other sectors of the economy. Other developed countries have implemented cap and trade mechanisms; for example, the European Union has had this system in operation since 2005. Currently, China, one of the worlds biggest emitters of CO2, is working on the implementation of a cap and trade system.

You MUST cite the required readings within the Tutoring. You also are required to use and cite material from the course. You are encouraged to use additional references, as needed, from the course and academic journal articles, documents from reputable international organisations (for example the WB, EU, OECD, the Australian Government website). Avoid using references from the popular press. You do not get additional marks for putting more references; you should use references that are relevant and cite them in the document.

Your paper must do the following:

  • Discuss the objective(s) of policies to reduce CO2 emissions.
  • Use economic theory (graphs) to explain the effects of the carbon tax with a cap and trade system in CO2. Discuss the effectiveness of these policies in the reduction of CO2 and how they operate.
  • Discuss the practical implementation and political feasibility of these policy instruments why these policies have succeeded or failed in achieving their goal.
  • Provide recommendations for Australia moving forward, which policy or policies should the country implement to reduce CO2 emissions and why. How will these policies achieve their objective (see first bullet point)?

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