Real-world scenario:
The Australian Government introduced a Carbon Tax in 2012 to mitigate greenhouse gas emissions and to tackle the serious environmental problem of climate change. The Coalition Government introduced a Direct Action Plan to replace the Carbon Tax and to achieve the same goal of greenhouse gas mitigation.
Select your corporate case or a sector
You are working as an economist / in the finance industry when you are approached to give advice on the policies above. For this project, you can choose the corporation that you are advising and the industry sector of which your corporate case aligns.
Select your sector and/or case. The case/sector selection is critical to this task. Seek advice if in doubt. Listed below are some examples. You are free to choose other corporate cases or sectors apart from what is listed below
Examples of Sectors
Examples of Corporate cases
Urban water
Renewable energy
Non-renewable energy
Food manufacturing
Transport
Mining
Forestry
Building construction
Banking
Local government
Healthcare
Horticulture
Alpine tourism
An urban water authority
A solar energy retailer
An electricity retailer
A petroleum refiner, distributor, retailer
A food manufacturing firm
A logistics firm
A mining firm
A plantation firm
A construction firm
A commercial bank
A shire or council
A healthcare provider
A horticultural firm/winery
An alpine ski resort
Compare and contrast the two policies of the real-world scenario and evaluate the likely impacts of both policies on your selected corporate case/sector by applying the knowledge gained from the course.
In your response, as a minimum, you should:
1) Describe the predicted climate change impacts on your chosen case or sector.
2) Discuss the rationale and the theoretical underpinnings of a carbon tax and compare it with the Direct Action Plan.
3) Identify various risks and opportunities for the chosen sector or firm in a carbon-constrained world.
4) Outline appropriate adaptation strategies.
Sample Solution
