The paper "Carbon Tax and Emission Trading Schemes in Australia" is a perfect example of a macro and microeconomic case study. The food industry is one of the largest sectors on a global basis. Its major contribution is to employment and sustainability. The industry is effectively divided into four sub-sectors such as the farm service, marketers, the processors and the producers. Agricultural production economics is characterized by various economic theory goals and objectives. They include: Farm manager’ s objectives-A farm manager’ s objectives will often revolve around maximizing their gains and satisfaction from their business.
This is achieved in line with keen utilization of the factors of production which include land, labor, capital and entrepreneurship. These resources are effectively utilized to eliminate the possibility of depleting them for sustainability. Output production choice-Agriculture entrepreneur will be faced with the dilemma of what production line will gain him maximum utility given the factors of production constraint. A good example is a farmer who decides to only keep livestock as their expertise is best in that line of production. Government influence also affects the production choice in a bid to regulate the agricultural industry. Resource allocation among outputs (Debertin, 2012). Resource economics, on the other hand, is a field of economics that concerns itself with developing appropriate economic theories in understanding a particular field of studies (Debertin, 2012).
The following paper seeks to critically analyze agriculture and resource economics in the subheadings of carbon tax and emission trading schemes in Australia, markets and market failure in the agriculture industry, sustainability and pricing of emissions resultant from farming economics. These are contemporary issues that are faced by business entities and individuals who venture in the field of agriculture and resource economics. Agricultural sector contemporary issues Carbon tax and emission trading schemes The carbon tax has been introduced in Australia to aid in environmental ethics and encourage proper waste management.
It was officially introduced in July 2012 by the Australian labor government.
Carbon Neutral. (2013, July 16). The Emissions Trading Scheme (ETS) Explained. Retrieved from Carbon Neutral: http://www.carbonneutral.com.au/about-us/news/49-news/291-ets-explained.html
Debertin, D. (2012). Agricultural Production Economics (2 ed.). Lexington,Kentucky: University of Kentucky: Department of Agricultural Economics ISBN-13 978-1469960647.
Professor Malcolm, B. (2009). Agriculture, Can it be sustainable?: Agriculture for Posterity. University of Melbourne ,Victoria: Department of Agriculture and Food Systems and Primary Industries.
SBS World News. (2014, June 25). The federal government has plans to abolish the carbon tax from July first onward and replace it with an emissions trading scheme (ETS). . Retrieved from http://www.sbs.com.au/news/article/2014/06/25/carbon-tax-versus-emissions-trading-scheme-whats-difference