Issues and Impacts of Carbon Tax: Response of Businesses and Customers Essay

п»їExecutive Summary

Climate change is known as a threatening a significant the global. As a result, carbon tax is used as being a tool to reduce greenhouse. The Australian Govt announced primarily the price of carbon tax is $23 per tone and has become a worried issue with policy proposal makers and its significant effects upon all society and economic climate. The survey will outline some features that associated with the issues and impacts of carbon duty as well as the responds of business and consumers. The carbon tax will make the big difference between the poor and the wealthy because of increased price coming from all goods, particularly the reduction of employment in coal, mining, manufacturing sectors. Also, the Australian industrial sectors will be endures the worldwide competition due to higher created cost. Therefore , the Australian Government should consider some rules, such as reduction of VAT, a lower co2 tax rate to decrease the regressive influences

Introduction and background

Today most of countries in the world will be facing the urgent difficulties are weather change, for example , the increasing ofВ emissions of greenhouse gases that effect on human and environment. Therefore , The Aussie Government recommended a policy upon climate alter is carbon dioxide tax which the polluters will pay $23 per tonne of carbon publishing into the air flow from Come july 1st 1st 2012. The purpose of carbon tax is always to reduce greenhouse gas emissions by making a cost recharged for polluting of the environment permit and stimulating to work with surroundings resources more efficiently. Nevertheless , any policy to reduce exhausts such as co2 tax will certainly raise the price. Indeed, the tax could have wide impacts affecting to trade, commercial sectors with the increased prices of goods and services. The report will certainly focus on carbon tax issues and initial effects after businesses by way of competitiveness, expenditure and the replies address the adverse effects of co2 tax.

The effectiveness of tax about supply and demand in microeconomic Based on the Economist's Dictionary of Economics (, microeconomics is an analysis of economics that created simply by individual's consumers, groups consumers and enthusiastic by price and profit factors. As well, microeconomics requires making the most efficient value to maximize valuable consumers and profit of companies. Certainly, tax could have a significant influence to reduce demand and supply. For instance , if a cool product raises value because of elevating tax, the buyers often buy various other goods with acceptable selling price. Thus, to adapt the demand of consumers, the sellers have to manufacture various other products with a price which the buyers accept easily. The impact of a Carbon dioxide Tax on Australian economic climate

The Australian Government recommended carbon duty to reduce the pollution that created several large affects on the fossil fuel; electricity sector; accommodation, gardening and production industries, and many others, for instance, the chance of long droughts, food costs, climate change in the very long terms would be the impacts upon agricultural location. On the other hand, the increasing disadvantages of skills labours induced to the business confronting in finding employees. Relating to Siriwardana, Meng and McNeill (2011), the career impact from the carbon taxes on different sectors of employment in the Australian overall economy (Table 1). Other impact is to decline the profit and revenues inside the retail groups because of fragile consumer, raising interest rates. Certainly, consumers is going to experience the value change of goods when businesses extra co2 tax that manufactures costs. The accurate impact of carbon tax about prices related to many parts such as alternative energy.

* Affects on salary

The Australian Federal government announced a lot of supports towards the low-income earners, pensioners and unemployed individuals to decrease the effect of the carbon tax upon income via some measures. However , poor people will be damaged more as the price than the rich because they put in all earnings for...

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Australian Govt. (2011). " Securing a clean energy future”, The Australian Government's climate modify plan. Recovered from

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Garnaut, R. (2008”. " The Garnaut weather change review”, Report, Phase 16, Cambridge University Press. Retrieved by

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Rahman, M. M. (2011). " The proposed carbon tax in Australia: impacts on income circulation, employment and competitiveness”, College of Accounting, Economics and Finance. Recovered from


Spash, C. D and Lo, A. Con. (2011). " Australia's Co2 Tax: A Sheep in Wolf's Apparel? ”, The Economic and Labour Associations, Vol. twenty-three, No . you, pp. 67 – eighty six.

Zhang, Z .. X. and Baranzini, A. (2004). " What do we know about co2 taxes? A great inquiry to their impacts in competitiveness and distribution of income”, Strength Policy, 32: 507-518.



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