The paper "Carbon Taxes and Direct Action" is a great example of a Finances & Accounting essay. In Australia, 5.6% of the gross domestic product comes from mining; this makes Australia the largest exporter of coal in the international trade. Despite the level of exports, only 1.3% of the Australian labor force is employed in the mining sector. The mining firms are technologically advanced and use a computer software in running the projects. In a case where the mines are in remote areas, the workers operate in a fly in and out basis and take short periods leave after a given period.
Mining in Australia has affected the environment substantially, for instance, deforestation, erosion, and pollution. The Australian government in 2012 had come up with an approach to reduce greenhouse emissions, the controversial carbon tax involved the government creating a certain cost with regards to the carbon produced by a firm or a company. This resulted in market forces that determine the reduction of emissions. In carbon tax, firms like Cougar limited will have certainty at the prices of carbon emissions.
There would be variation in the results of greenhouse gas emissions. Through carbon tax the government can create revenue that can be used for compensation purposes, the revenue can also be used to improve productivity and engagements that can help to reduce greenhouse emissions. It is an important point to note that carbon tax has negative effects on income growth and an increase in productivity (Oleynik 2005). The direct action plan involves the intervention of the government to cougar energy limited among other mining firms in the mining industry to reduce greenhouse gas emissions.
Some of the measures the government may apply in the direct action include termination of contracts and licenses to high-emitting firms, provision of subsidies to firms that lower their levels of emissions, and restricting entry to sectors that contribute to high greenhouse gas emissions. A direct action plan does not increase revenue to the government and can have undesirable effects on the nation's growth and income generation. The federal government favored the direct action plan mostly since firms would be more willing to reduce the levels of greenhouse emissions. Predicted climate change impacts There are some predicted climate change impacts in the mining industry; the impacts can either affect the sector directly or indirectly.
OLEYNIK, I. S. (2005). Australia: mineral & mining sector investment. Washington, DC, International Business Publications.
CROMWELL, D., & LEVENE, M. (2007). Surviving climate change: the struggle to change global catastrophe. London, Pluto Press.