Carbon Pricing

The threat of global warming caused by harmful emissions (mostly of carbon dioxide) and the potential consequences of such climate change have resulted in governments looking for ways to get its societies to reduce emissions from the use of fossil fuels.

Two ideas have been considered and implemented by various governments. One is a Carbon Tax. The other is a Cap-and-Trade system. Left wing political philosophies are generally in favour of more government action to reduce damage to the environment while those on the political right are generally more concerned about the economic impact of such government action.

INSTRUCTIONS:

Please help with the following questions, giving full explanations and refences. Thank you

1. Describe how a Carbon Tax works. What would be the expected benefits of a Carbon Tax system? What would be the drawbacks? Research two cases where a carbon tax has been used? What have been the results for the economy and for the reduction of emissions?

2. Describe how a Cap-and-Trade system works. What would be the expected benefits of a Cap-and-Trade system? What would be the drawbacks? Research two cases where a Cap-and-Trade system has been used.What have been the results for the economy and for the reduction of emissions?

3. Based on your research, present recommendations for what government action should be taken on this issue in Canada. Consider both the environmental needs and those of the economy. Consider the benefits and costs of each approach.