Sunday, November 23, 2008

Chapter 3 - The Role of Government in a Market Economy

Article - http://www.economist.com/world/asia/displaystory.cfm?story_id=11793340


Summary

This article that I chose from the Economist website briefly explains the steps the Labor government in Australia is taking to reduce carbon emissions. Mr. Kevin Rudd, leader of the party and supporter of the Kyoto Protocol, aimed to cut 60% of emissions of year 2000’s levels by 2050. To achieve this, companies that emit the most pollution will have to buy these permits from a market auction each year starting from 2010. Even by implementing this, the Australian government will provide initial benefits to ease these companies to integrating the plan. These benefits include free permits for companies that will suffer in export; coal-fired power stations will receive cash compensation; and for three years, excise taxes will be cut if petrol prices rise from carbon costs.



Connections


The connection between chapter 3 and this article would be about third party effects. This would be a negative third party effect. Being a country capable of supporting New Zealand, Indonesia, and Singapore’s electricity with their supply of coal, the amount of pollution these industries emit has a significant impact on Australia and the world. Coal processing contributes a large amount of pollution to the air, which can cause many harmful effects to both humans and the environment. The carbon emissions build up the amount of greenhouse gases in the atmosphere, thus increasing global temperatures. This increase in temperature disrupts the balance in nature, causing many disasters to occur throughout the world.



Reflection


Global warming is an issue that many are concerned about now more so than before. What the Labor government is doing to lower carbon emissions is not only helping its own country, but is also helping to shape the future for people around the world such as myself. Countries that have not done anything to lower their carbon emissions should follow Australia as an example. But with the effects of global warming already being felt by many, hopefully this may be sufficient enough in helping the world slowly recover from the damage done by years of pollution.

3 comments:

Jason said...

It is always a positive thing to see when any kind of effort is made towards lowering greenhouse emissions. I agree that the coal industries in Australia do have a negative third part effect, not only environmental wise or globally but also at a local level.Property that is located next to coal/greenhouse emitting factories have inferior values. The sanitation of the air and water in these areas will also deteriorate. It is worth mentioning that according to the article, there is to be a market auction each year starting from 2010, for people to buy permits to emit carbon but at the same time compensates businesses who will suffer from this.I can understand why Green party members would think the government is trying to ease the effects of this policy. By imposing a rule that companies would have to buy permits to emit carbon but at the same time cut the excise tax if petrol prices rise due to carbon costs it seems to favour the businesses more with the guarantee of aid. Overall I believe Australia is being a positive model in reducing carbon emissions. The government of Australia is also making large risks considering the country's dependence on coal as a main export.

J.Tam
Block F

Michael Li said...

As an environment cautious person, I remind myself not to create a lot of waste and pollution to the surroundings. In my opinion, this can be one of the best solutions in solving the harmful pollutions. However, there are upside and downside to this. The advantage is it would decrease the pollution by more than half Australia had in recent years. However, the downside of this is that the citizens of Australia must also chip in money for tackling the pollution. In another words, government will go through citizens’ pockets and take money for the compensation for the coal-fired power stations. Australia should encourage countries which are the top polluters to take this action too. Having only one country tackling global pollution does not have major effect. The world must step in together and come across global warming. All in all, I support Australia in reducing carbon emissions even though it would cost me. I believe it is worth it since I still want to be able to live in a cleaner future.


Michael Li
Block F

K L said...

Australia is taking a gigantic step. A big step towards achieving a better and less polluted environment. I like how you chose a topic that almost everyone can relate to. Nowadays, most if not all citizens are concerned about the amount of pollution in the atmosphere. This plan that the Labour government of Australia has came up with is the start of a better future. Although it is only one of the many countries in the world, Australia is setting a good example for all the others to follow. If the majority of counties follow Australia’s initiative, then the overall pollution in the atmosphere would be cleaner. Children in the future would be given the chance of growing up in a better environment. Isn’t this what we would all like? For our children to be able to have what we had before we jeopardized it with all the harmful chemicals released into the atmosphere. In conclusion, I admire Mr. K. Rudd’s lead in cleaning up Australia’s pollution.

K. Li
Blk F

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