The paper "The Proposed Australian Carbon Tax " is a perfect example of a micro and macroeconomic case study. The Australian carbon tax is the policy was a measure that introduced to ensure that there is a responsibility of the social damages that a firm causes as they engage in activities of goods production. The measure is aimed at closing the existing gap which allowed many firms to engage in business activities which caused social damages and not be held accountable for their activities. The major focus of the proposed policy is the carbon emission from industries.
From the eyes of the many players in the industry with the introduction of the proposed policy is not an all rosy affair as it will bring with it some advantages and disadvantages. The proponents of the introduction of the policy argue that it will help to ensure that other forms of energy are used leading to more business opportunities. These proponents also feel that the revenue raised from the taxes would be well utilized by the government to spur growth in other sectors of the economy.
Opponents of this policy indicate that the policy would lead to the gap between the rich and the poor widening. It has also been felt that the implementation of the carbon tax policy would lead to a loss of jobs as some firms will be forced to reduce their production. Introduction and Background The proposed Australian Government policy on carbon emission is also known simply as the Carbon Tax. Many economists have termed it as a price on pollution. The tax is imposed on carbon emitters in an attempt to reduce carbon emissions in Australia (Van Heerden et al, 2006).
This follows a study indicating that of all the developed countries in the world, Australia is the largest carbon emitter. A report published following the studies recommended that ecotaxes be used to address the climate issue. It is for this reason and also the mounting pressure from the civil society and other climate-friendly organizations that the Howard Government was forced to establish a Task Group that would advise the government on matters regarding emissions trading schemes.
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