Carbon Tax: The Australian Government - Term Paper Example

Carbon Tax: the Australian Government Outline Introduction 2 Audience Segmentation Analysis 2 Literature Review 4 Communication Objectives 5 Creative Strategies 6 Media plan 7 Conclusion 8 Reference List 9 Introduction A carbon tax or CO2 tax is a tax on the carbon content. Carbon tax is an indirect tax as opposed to a direct tax, which taxes income. A carbon tax can also be called a price instrument, since it is used effectively to tax carbon dioxide (CO2) emissions from burning fossil fuels. The carbon content of every form of fossil fuel, from lignite coal to anthracite, from natural gas to residual oil, is precisely known. A carbon tax thus presents few if any problems of measurement or documentation. Therefore, administering a CO2 tax or carbon tax should be simple; the government should used existing tax collection mechanisms, a carbon tax would be paid far “upstream.” Carbon reductions in Australia is essential to prevent runaway climate change and avert resulting severe climatic conditions, spread of diseases, inundation of coastal areas, failure of water supply and agriculture, forced migrations, infrastructure destruction, political upheavals and international conflict. A carbon tax must be put a priority in reducing greenhouse gases into the atmosphere. Currently, the price of electricity, gasoline and fuel general include none of the costs associated with climate change. This omission suppresses mechanisms to develop and set up measures that will reduce greenhouse gases into the atmosphere such as energy efficiency, renewable energy, low carbon fuels, and conservation– based behavior such as recycling and, bicycling. Conversely, carbon tax according to greenhouse emission will infuse these incentives at every decision and action- from individuals’ choices, to businesses choices, to governments’ choices. CO2 tax won’t stop climate change by itself, but without CO2 tax, even the most aggressive regulatory regime and enlightened subsidies will not help in reducing carbon emissions into the atmosphere. Audience Segmentation Analysis Climate change is a classic “wicked problem.” “Wicked problems cannot be solved easily and are beyond the capacity of any one country or organization to solve, and there might be many disagreements among organizations about the causes and the best ways by which to solve the problem” (Leiserowitz 2006). Managing climate change problems requires engaging citizens and other stakeholders in policy making and implementation of these policies, and ultimately changing the behavior of all citizens (Conklin 2006). Successfully adapting and mitigating to climate change will require modifications in population behavior and public policy. “Many factors limit the success of engagement campaigns, however some of these factors are inherent and others situational” (Moser 2010). “Audience segmentation is a method or process of a certain group of people within a large population segment who are identical with regard to critical issues (such as behaviors, beliefs, political ideology etc) that are important to the objectives of a public engagement campaign (e.g., consumer boycotts, product sales, political participation)” (Slater 1995). “Six segments were identified, each with a given concise but differ with regard to how engaged they are with the issue of global warming, what they believe about climate change, what they are doing about global warming, and what they would like Australia government officials, citizens and businesses do about global change “ (Dibb 1999). The six segments also differ with regard to size. These six audience segments represent a spectrum of action and concern about global warming, ranging from the Concerned, to the Alarmed, Disengaged, Cautious, Doubtful and Dismissive. In brief, the Alarmed segment most engage in to do with global warming (Edward et el 2010). This group is convinced it is human-caused, happening, and as it is urgent and serious threat. The Alarmed are already supporting the government’s aggressive response and already making changes in their own lives (Edward et el 2010). The Concerned segments are also convinced on the threat of global warming, but are distinctly less involved in the issue (Edward et el 2010). The Cautious segment also believes global warming is a threat, but they are less concern it will happen than the Concerned or Alarmed (Edward et el 2010). The Disengaged segment hasn’t thought much about the global warming issue. “This segment are likely to change their mind about threat of global warming, and they are the most likely to select the ‘‘don’t know’’ option in response to every survey question” (Edward et el 2010).The Doubtful segment are divided on the global warming threat, those who think it isn’t, and those who don’t know. People in this segment believe global warming is caused by natural environmental changes, and that these changes won’t harm people. Finally, Dismissive segment, like Alarmed segment, people in this segment actively engaged in the global warming issues, but are found on the opposite side of the spectrum (Edward et el 2010). “Majority of people in this segment believe global warming is not happening, and it is not a threat to either animals or people or non-human nature, and it is not a threat that warrants societal or personal response” (Edward et el 2010). Literature Review It is well-known that human beings have contributed to an increase in radioactive forcing. In the past few centuries, CO2 in the atmosphere has increased by more than 35 per cent. According to climatologist, the increase in CO2 in the atmosphere has been caused by human activities, predominantly the burning of fossil fuels (Schneider and Azar 2001). To a lesser extent, land-use changes, deforestation and agricultural activities like coal mining, cement production and animal farming also contribute to greenhouse emission (Thomas et al 2004). Most scientists agree that the world’s average temperature has been on the rise since the time of the Industrial Revolution. Year-to- year changes has risen approximately 0.7 degree centigrade since 1860. The period from the early 80’s onwards has been reported to be the warmest period in the last 2,000 years (Schneider and Azar 2001). It is most likely activities that are associated with humans are the once contributing to this warming trend of the globe. There is a high correlation between increase in carbon dioxide and other greenhouse gases and increases in global temperature, from 1860 to present, increase in population and rapid industrialization. In 2001, a report related to global warming was released by IPCC. In that report they estimated by 2100, global average temperature would rise by 1.4 degrees centigrade to 5.8 degrees centigrade (Schneider and Azar 2001). While warming at the low end would be less stressful, but warming at the high end will have widespread negative consequences (Thomas et al 2004). Based on these projections, IPCC has produced a number of likely effect of global warming most of which have negative effects (Leemans and Eickhout 2004). These negative effects include intensity of floods and droughts; more frequent heat waves (and less frequent cold spells) (Leemans and Eickhout 2004); more intense storms (tropical cyclones, hurricanes, etc) and surge in weather-related damage; increased warmer surface temperatures, especially at higher latitudes; rising sea levels, which could inundate coastal areas and small island nations; movement of farming to other regions and/or loss of farming productivity, most at higher latitudes; more rapid spread of disease (such as malaria, etc); and species loss of biodiversity and extinction (Leemans and Eickhout 2004). The report further suggested that rapid increase in temperature could trigger “surprises” (Smith, Schellnhuber, and Mirza 2001). (Tol and Dowlatabadi (2002) took this step to define “imaginable surprises” as events or activities that are damaging and cannot be anticipated. According to the Australia government, a carbon tax is a cost effective way of reducing carbon dioxide. From an economist perspective, carbon tax is a type of Pigovian tax. It helps the Australian government to address the emitters of carbon dioxide gases and not facing full costs of their actions. Communication Objectives Energy efficiency in the only practical solution for addressing global warming issues. Currently, there is a national push to prevent the growing climate problems (such as droughts and floods, etc), primary focused on the reduction of greenhouse gases emissions. Many Australians believe the only way to mitigate climate change is to move to renewable energy. While the use of “renewable” technology is certainly a long term solution in reducing or preventing problems of global warming, there are many challenges facing renewable energy, particularly in the short run (Leiserowitz 2006). Atmospheric Scientists believe there is a potential that greenhouse gases level in the atmosphere could reach a saturated point at which time it will be too late for the government to take action in reducing greenhouse gases because CO2 build up in the atmosphere which will destroy the environment to such an extent that it will be irrecoverable (Noar, Benac, Harris 2007). To prevent the threats of global warming from becoming a reality it important for the Australians to reduce their energy consumption. And this will instantly reduce greenhouse gases or CO2 emission from electricity generating plants due to decreased demand for electricity (Ockwell, Whitmarsh, O’Neill 2009). The need for reduction in energy demand is the driving force behind CO2 or a carbon tax system, where consumers are taxed according to their energy uses (Leiserowitz 2006). A carbon tax or CO2 will encourage people to use their energy efficiency and this in return will reduce the demand for energy. At same time individual who will not waste their energy usage will be provided with economic incentive and economic penalty for those individuals who do not conserve energy. Moreover, low income earners in Australia are the biggest winners from the government’s compensation scheme which will reduce the pressure on the cost of living from taxes incurred by big carbon polluters. The Australian government is offering tax breaks to low income families and pensioners, while middle-class income earners will be compensated to soften the living costs and rising household bills associated with CO2 or carbon tax (Leiserowitz 2006). Creative Strategies Understanding people behavior is an important element for a well planned carbon tax law or carbon reduction programme. One such strategy the Australia government can use is to encourage ‘behavior change. In many countries where carbon tax have been implemented, behavior change has become the latest sustainability strategy of carbon cut in the atmosphere yet behavior change remains an intangible concept in Australia. Understanding what drives people or group of people to behave in a certain way have always been a mystery, and addressing habits relating to energy saving energy or consumption in Australia is no different. The resulting improvements on carbon tax must go hand-in-hand with incentivizing and educating the people in Australia who use their houses to get maximum efficiency. Australians have a choice in their action on saving energy and it’s the responsibility of the government to help the people in making the right choice. For example, switch off- choose to switch off computers, lights, air conditioning, and electric cooker when not in use; waste not - conserve resources and separate waste for recycling; access- take the stairs not the lift or choose to travel via low carbon transport; control- use windows and thermostatic controls appropriately. The second strategy the Australian government can use is about communication. People need to understand the benefits of carbon tax or CO2 tax or changing their behavior and sharing stories sharing success stories on carbon reduction. The use of data is important and powerful. Real time energy displays is ideal, along with league tables and comparisons, so Australians can see their efforts in conserving the environment is delivering results. The third strategy for success on carbon tax is collaboration. A carbon reduction program is an opportunity for the Australian government to create partnership with between occupants (tenants) and property managers where all parties in the agreement are helping each other in achieving a common goal. The government should introduce incentives which will help to build relationships and these incentives cannot be expensive. For example, school children who made the biggest commitment to conserve environment should be rewarded with a teddy bear. In brief, people belonging to the “Alarmed” segment are strongest supporters of government policies that will reduce carbon emission into the atmosphere. Most “strongly favor” policies that encourage more renewable energy, higher energy efficiency from bards and new buildings. Increase taxes on electricity and gasoline so that Australian uses less. While, “Cautious” people are predisposed to purchase energy efficient consumer goods or products but are less likely to participate in carbon tax “politics.” Media plan The alarmed people don’t need further motivation to act on the issue about global warming, what they need is actionable suggestions that will encourage them to become part of the solution in the reduction of carbon emission. Most important, “alarmed” people need to be told how critical it is for them to act as Australian citizens, additionally, to wield their influence as consumers. “Alarmed” are easily reached through a wide range of civic organizations and news media (such as TV, radio adverts etc) (Akerlof and Maibach 2008). Like the “alarmed’ people, the “concerned” people don’t need additional motivation to be part of carbon emission reduction. Rather, they will benefit from clear instructions on ways they can act and make a difference and this include political advocacy. For example, the government should identify more actions that will reduce greenhouse emission (carbon footprint) the most. Various news channels- TV print, and websites- are a good way to reach this group of people. The “cautious” people like watching television news and reading newspapers, and have trust in the medium (Akerlof and Maibach 2008). Cautious Australians are likely to have seen or read reports of “both sides” of the global warming or climate change “controversy”. The government should continue to emphasize that there is scientific proof that climate change is real, and that is primarily human beings caused, and will have negative consequences to people in Australia. Radio and TV is a stronger media to reach “cautious” Australians. Additionally, certain popular print magazines appeal to older this segment (older audience) such as AARP Magazine, Times and Readers Digest (Maibach, Weber, Massett, Price, Hancock 2006). The “unconcerned people” as with “cautious” and “concerned” Australians, the government should emphasize the potential for local impacts with this segment. These people tend to see climate changes threats as happening elsewhere and many years into the future. Likewise, the government should continue to emphasize on the scientific proof that global warming is real happening, is harmful to people, and is primarily human caused (Akerlof and Maibach 2008). This group can best be reached through local newspapers or magazines as well as TV news. Many of “unconcerned people” attend church. “Thus efforts to engage non-evangelical Protestant churches may be a particularly effective way to reach this group with messages framed in terms of the stewardship ethic” (Maibach,Weber, Massett, Price, Hancock 2006). “The doubtful” people: the government should strongly stress on the scientific agreement that global warming is real happening, harmful to people, and human caused (Akerlof and Maibach 2008). Communicators should also help “doubtful” people they should take action to protect themselves against uncertain threats such as health insurance or fire insurance for their premises, because it is a sensible thing to do (Maibach, Weber, Massett, Price, Hancock 2006). “Doubtful” are easily reached through a wide range of civic organizations and news media (such as TV, radio adverts etc) (Maibach, Weber, Massett, Price, Hancock 2006). Conclusion Carbon tax or CO2 tax will have a significant impact on carbon emission or greenhouse gas emissions. Carbon tax is likely to succeed in reducing Australian carbon emission. To some extent carbon tax would damage the Australian economy, but that is the price the government must prepare to accept in return for safe environment for its citizens. Therefore, the government should not be swayed on the implementation of carbon tax. Reference List Akerlof K, Maibach E 2008 ‘‘Sermons’’ as a climate change policy tool: Do they work? Evidence from the international community. Global Studies Rev 4: 4–6. Dibb S (1999) Criteria guiding segmentation implementation: Reviewing the evidence. J Strategic Marketing 7: 107–129. Leemans, R. and B. Eickhout, 2004, “Another reason for concern: regional and global impacts on ecosystems for different levels of climate change,” Global Environmental Change (Part A) 14: 219-228. Leiserowitz A (2006) Climate change risk perception and policy preferences: The role of affect, imagery, and values. Climatic Change 77: 45–72. Schneider, S.H. and C. Azar, 2001,“Are Uncertainties in Climate and Energy Systems a Justification for Stronger Near-term Mitigation Policies?” Proceedings of the Pew Center Workshop on The Timing of Climate Change Policies, ed. E. Erlich, 85-136. Washington D.C., 11-12 October 2001. Maibach E, Weber D, Massett H, Price S, Hancock G 2006, Segmenting health audiences based on their information use and decision-making preferences: Development and initial validation of a brief screening instrument. J Health Comm 11: 717–36. Noar SM, Benac CN, Harris MS 2007, Does tailoring matter? Meta-analytic review of tailored print health behavior change interventions. Psych Bull 133: 673–693. Ockwell D, Whitmarsh L, O’Neill S 2009, Reorienting climate change communication for effective mitigation: Forcing people to be green or fostering grass-roots engagement? Sci Comm 30: 305–327. Smith, J. B., H.-J. Schellnhuber, and M.M.Q. Mirza, 2001, “Vulnerability to Climate Change and Reasons for Concern: A Synthesis,” in Climate Change 2001: Impacts, Adaptation, and Vulnerability, ed. J. J. McCarthy et al. Cambridge: Cambridge University Press, 913–67. Thomas, C. D. et al., 2004, “Extinction risk from climate change,” Nature 427: 145. Tol, R.S.J. and H. Dowlatabadi, 2002, “Vector-borne diseases, development, and climate change,” Integrated Environmental Assessment 2:173-181. Read More