Essay Evaluate Existing Economic Theories – Contemporary National and International Circumstances – Economics Assignment Help

Assignment Task :

Learning Outcome 

ULO 1: Interpret and apply basic principles and their effect on individual economic decisions (microeconomics), the economy as a whole (macroeconomics) and how economic indicators (data) are used to validate these economic behaviours. 

ULO 2: Apply economic principles to the analysis of important decisions confronting the management of business organisations. 

ULO 3: Critically evaluate existing economic theories in the context of real and contemporary national and international circumstances. 

Requirements 
Australia’s bushfires in 2019 reignite its debate about climate change. In this assignment, you will discuss the public policies on greenhouse gas emissions, an important contributing factor to climate change. Each of the following four questions is worth 10 marks. 

1. In your own words, summarize the article “Australia’s rising greenhouse gas emissions” by Greg Bourne, Andrew Stock, Will Steffen, Petra Stock, and Louis Brailsford. In particular, think about the following: What is Australia doing to tackle climate change? What is its emissions reduction target? What might help Australia to achieve its goal? 

2. Many observers believe that the levels of greenhouse gas emissions in our economy are too high. 
a. If society wants to reduce overall emission by a certain amount, why is it efficient to have different amounts of reduction at different firms? 
b. Economics usually prefer corrective taxes over regulations as a way to deal with greenhouse gas emissions. Can you explain why? 
c. Suppose there is a sharp development in the technology for controlling greenhouse gas emissions. Using a diagram for the market for emissions, illustrate the effect of this development on the demand for emissions rights. What is the effect of a carbon tax on the price and quantity of emissions? Explain. 
d. The demand for emission rights depends on the time horizon. In the short term, the demand for emission rights is likely inelastic because firms may not have many alternatives. Over time, however, demand becomes more elastic because more alternatives are developed. Illustrate the effects of an increase in carbon tax on emissions in the short run and in the long run. Explain. 

3. A carbon tax makes the individuals and firms to pay for the full social cost of carbon pollution. Do you think the carbon tax is a good policy to reduce greenhouse gas emissions in Australia? Why or why not? Whenever appropriate, you should supplement your answers with suitable diagrams.

4. Find two countries other than Australia that have implemented a market-based approach to control emissions such as carbon taxes and cap-and-trade schemes. Give a brief description of the emissions controlling policies in these countries.