The paper "The Impact of the Carbon Tax Plan on Jobs in Wollongong" is a wonderful example of a research proposal on finance and accounting. From the newspaper article, it is reported that many people would have lost their jobs with the implementation of the carbon tax plan. Some studies also indicated that the region’ s economy would deteriorate as a result of this carbon tax plan. This paper proposes a survey to establish whether many people are losing their jobs as a result of the implementation of the carbon tax plan. Purpose of the study This study aims at establishing whether the prediction that many people would have lost their jobs with the implementation of the carbon tax plan is true in Wollongong now that the plan is in place.
A survey would be carried out to determine the rate at which people are losing their jobs as a result of the implementation of the carbon tax plan in the Wollongong region. This study will help in the provision of recommendations that can be used to ensure that many people do not continue losing their jobs.
This would also help in proposing some amendments to the carbon tax plan to ensure that the economy of the region does not collapse. Literature review A carbon tax is a tax levied on energy sources that emit carbon dioxide. Carbon tax aims at addressing negative externality (Winkler and Marquard, 2009). These externalities come about when production activity imposes benefits or costs on others (Nordhaus, 2010). A carbon tax is usually imposed in order to reduce carbon dioxide emissions and thus reducing the rate of global warming. It is widely believed that carbon dioxide production results in both environmental and social problems including global warming (DuPont 2009).
The effect of these problems is felt by both those who consume the product and those who do not (Nordhaus, 2010). From the article steel industry and coal mining industry are carbon-intensive industries in Wollongong. These industries have a lower cost of production as compared to that which is experienced by societies living in the region (Lippke and Perez-Garcia, 2008). The exclusion of these negative externalities is often not included in the price of carbon dioxide emission and as a result, there has been overconsumption of coal and steel without consideration of social efficiencies (Scrimgeour, Oxley, and Fatai, 2005). A carbon tax is usually intended to internalize these externalities (Winkler and Marquard, 2009).
This implies that the pricing of a product whose exploitation and production that emits carbon dioxide includes both external and private costs (Lippke and Perez-Garcia, 2008). Such pricing can consequently result in a fall in the demand hence establishing a new equilibrium that is socially efficient (Yang, 2001). This is because the total cost to society equals the total benefit to society. Some of the benefits of a carbon tax are that it encourages the firms and consumers involved to seek alternatives that are more efficient (Metcalf, 2009).
For instance, firms are encouraged to utilize green sources of energy in their production processes (Winkler and Marquard, 2009). Thus in the case of steel and coal industries in Wollongong, the tax plan could reduce exploitation of coal while the steel industry will seek alternative green energy to run their production processes (Yang, 2001).
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