Commentary

This essay has outlined all the current positive aspects of Australian society, but we need to address the future and the sustainability of our environment for our grandchildren. The federal government is addressing this issue by introducing a carbon-trading scheme. This carbon trading scheme, where the tax on carbon producing goods and services go into a positive influence on the environment, for example planting trees. The Australian government is following leads by other countries in this circumstance.

For the last two decades, the increased use of fossil energy caused the environmental problems. The evidence of global warming, like drying rivers, extinction of species, melting of glaciers, became more often around the planet. The climate change became a threat to healthy environment and prosperity of humanity and wildlife, and the world community started searching for solution to combat climate change. In 2008 British Columbia introduced carbon tax on greenhouse gas (GHG) emissions to reduce global warming. Starting from $10 per tonne of CO2, the price was increasing annually till it reached $30 per tonne in 2012. During that period British Columbia was reducing harmful emissions and improving economy comparing to the rest of Canada. However, since the price rise on carbon stopped in 2012, no improving changes in cutting emissions, economy, and overall quality of life have been noticed. In this essay I will persuade that British Columbia should continue gradually increase price on carbon tax to the level where it will significantly cut the use of dirty energy, provide enough investments into the green projects, and support low-income families.

Air pollution is a big issue in the world today but that is no reason to put a carbon tax on businesses in Australia putting a carbon tax in place will force Businesses to raise their prices which will affect the Australian consumer in the long run that is why it should not be re introduced. Australia does not have a big impact on the world's air pollution but in Australia as the population

Australia’s annual greenhouse gas emissions have historically been steadily increasing. However, in recent years this trend has stopped - the emissions rate has steadied. The Australian nation has been emitting in the range of 250,000 to 450,000 thousand metric tons greenhouse gases per year from 1990 to 2010.

Government enacted solutions are probably the most effective ways to reduce carbon emissions and to control pollution since unfortunately the majority of individuals mainly act to their own self-interest and are not concerned with the future of the planet. This is a prime example of the tragedy of the commons, which is the exploitation of a common resource. In this case the common resource is the atmosphere. The first method proposed is the carbon cap trade system. The term cap means the limit or the maximum of the amount of pollutant to be emitted. A trade refers to the transfer of permits that have to be bought by firms that need to increase their volume of emissions from firms that require fewer permits 1. The carbon tax method is a tax on the carbon content of fuels — effectively a tax on the carbon dioxide emissions from burning fossil fuels 2. So, which system would be best for the government to enact to reduce carbon emissions in the atmosphere?

The Australian Government participated in the reduction of trade barriers as part of the General Agreement on Tariffs & Trade (GATT). As a result there have been pressures on the above mentioned industries that were previously protected. They have effectively become, or are becoming, casualties of what is termed ‘a race to the bottom’ between national governments as they attempt to attract investment by undercutting competition.[vi] The industries without protection are inefficient and thus profit is affected forcing firms to shift elsewhere or outsource in search of improving efficiencies.

In Australia, there is an emerging consensus that the government should take further actions to help mitigate and combat climate change. The current most accepted policy by government is the introduction of a carbon tax followed by an ETS in 2015. However we are focusing on the carbon tax in this essay and not the ETS. Here is a brief explanation of the dynamics of a carbon tax. A carbon tax is a tax on energy sources, which emit carbon dioxide (Co2). Therefore, carbon taxes address the problem of negative externality. Externalities are the subsequent effects when individual production or consumption of a particular good or service imposes costs or benefits on others. Therefore negative externalities are effects, which pose harm to others without their direct interaction (Basic Economics 2011). However, usual market practices and transactions do not reflect these cost and benefits in the prices involved in the transaction, or take into account in their transaction decision. Therefore this is a form of market failure. By imposing a cost on these negative externalities, the hidden cost can be addressed. Ultimately the purpose of a carbon tax is to reduce emissions of carbon dioxide and therefore reduce

In February 2011, the Australian federal government declared a scheme to implement a Carbon Tax from July 1, 2012. Implementing this scheme has generated a controversial debate between Australians. The term “Carbon tax” refers to an environmental tax forcing polluters to pay per ton of carbon which they release into the atmosphere. This essay will provide the economical, social and political implication of carbon taxes, also with its introduction who will benefit and who would suffer.

Did you know that Australia is the leading cause of pollution per person? It's disgraceful that our renowned, beautiful, almost sacred country, has to be put under such scrutiny because of our problems. If we don't rise to the problem that is occurring right now, our children, and their children!, will be suffering because of our present past doings. Australia is 15th on the list of highest carbon polluters, and guess what! Our emissions are still increasing every day. And it's in our growing power to do something about it. And now is the time to do something about it.

However, the Gillard government has instituted one fairly radical and controversial policy: the new imposed carbon tax which took effect on July 1, 2012. The tax requires 500 of Australia's top polluting companies to "pay a fixed price, starting at Aus$23 per tonne, for their carbon dioxide emissions for the first three years. The mechanism would then shift

Over the past few decades, sustainable business practices have become more prevalent and required in corporations. Australian organisations are required to be responsible for being sustainable socially, economically and environmentally, here we focus on the environmental factors. Australia’s government is constantly coming up

One positive implication capitalism has to the natural environment is industrial ecology, a system of chain production and consumption, serving to the lowest environmental impacts in a most environmentally sustainable economy as the main goal of operation (Richards & Pearson, 1998). The Companies in a like to operate in such way because of four major reasons. The most important factor is known as the corporate well-being, for it is determined by higher profits and growth provided by innovations in an industry. Profits are increased from recognizing the production ineffiency costs that comes from wasted inputs and energy losses; this allowing cost savings to increase and ineffiency to decrease. compliance with cleaner technology alternatives such as ones that produce less waste and less energy will provide long term savings which are both beneficial to the environment and the business at hand. A real world example freight company changes their salvaged driving equipment to hybrid vehicles. Money is temporarily lost, but the gasoline and maintenances cost savings will compensate in a long run period of time.

Fees and regulations are similar to taxes. The government charge all firms the same fee and to set the same standard for all firms. This will achieve the same level of emission reduction at a lower cost for all firms and firms will have an incentive to reduce their emissions.

• Companies do not pay the full costs of their impact. For example the costs of cleaning pollution often fall on society in general. As a result profits of corporations are enhanced at the expense of social or ecological welfare.

Globalization has led to greater inequality in Australia. It could be due to increased trade and growth, and capital liberalization doesn't work in favor of the poor. Governments are supposed to reduce the negative financial market positions and not impose any such policies that would enhance those situations. Instability can cause deterrents for both firms and governments in the same manner. Interest rates being on a rise can reduce investment and a volatile currency will discourage exporters, especially the smaller firms that do not have any financial expertise to guide them. Expansionary policies will also be affected as the cost of borrowing increases. And these pressures on the government demand that it lower taxes and increase incomes, at the same time cutting the government's own spending patterns,