Climate Change Know How!? 氣候變化知多少

http://cuqldfreeblog.blogspot.com/2011/07/climate-change-know-how.html

(full version with photos and pictures)

Not sure if you have followed and understood the debate on measures to contain the destructive effect of climate change. Since the ALP Government has just announced the scheme of impose carbon tax effective 1st July 2012 this afternoon. It is time that you must learn the basic about all these issues, by reading the quoted article as follows.

Explained: Carbon taxes, emissions trading and direct action Updated Fri Jul 8, 2011 12:30pm AEST

What's the difference between a carbon tax, an emissions trading scheme anddirect action?There are three key approaches governments around the worldare taking in a bid to lower carbon emissions: carbon taxes; emissions-tradingschemes (ETS); and direct action.The Federal Government's plan, thoughwidely referred to as a carbon tax, actually involves implementing a fixed-priceETS from July 2012 and then shifting to a standard ETS within three to fiveyears.The Federal Opposition favours a direct action approach.Here are the key details about each concept.

Carbon tax

a) the government sets the price of carbon
b) the resulting market forces determine how much the quantity of emissions is reduced
c) businesses have certainty about the price of carbon emissions
d) the resulting level of emissions would vary
e) increases government revenue, which can be used for compensation, to encourage productivity or to promote low-emissions technology
f) can have negative effects on productivity growth and incomes

Standard ETS

a) the government caps total emissions and issues permits to emit up to that amountbusinesses can trade the permits, so the market determines the price of carbon
b) the price of emissions fluctuates, can be volatile
c) there is a set limit on the final level of emissions
d) increases government revenue, which can be used for compensation, to encourage productivity or to promote low-emissions technology
e) can have negative effects on productivity growth and incomes
f) the Federal Government proposes to move to a standard ETS after three to five years of a fixed-price ETS.

Fixed-price ETS

a) the government caps total emissions and issues permits to emit up to that amount
b) businesses can trade the permits, but the government also fixes the price of the permits
c) the price of emissions is pre-determined
d) there is also a set limit on the final level of emissions
f) increases government revenue, which can be used for compensation, to encourage productivity or to promote low-emissions technology
g) can have negative effects on productivity growth and incomesh) the Federal Government plans to introduce a fixed-price ETS from July 2012

Direct action

a) the government intervenes to direct businesses and households to lower emissions
b) examples include closing high-emissions factories or power plants, subsidies for low-emissions products and restricting new investment in high-emissions sectors
c) no increase to government revenue
d) can have negative effects on productivity growth and incomese) direct action is the approach favoured by the Federal Opposition

Still confused?

The differences between a fixed-price ETS and a carbon tax are complicated but here is how David Pannell, the director of environmental economics and policy at the University of Western Australia, outlines them in an article at The Conversation:"The [Government's] proposal is to fix the price of permits for the first few years, presumably to reduce uncertainty during the transition period after the scheme commences," he writes."It would still be an ETS, with a cap on emissions and permits that can be traded, but the price of permits would be fixed by the government."There is a similarity between the fixed-price ETS approach and a carbon tax. If the fixed price is set at a high enough level, then it would be that price, rather than the cap, that determines the level of emissions."At that high carbon price, people would actually emit less than the maximum level set by the cap. In that case, the ETS would be behaving somewhat like a tax."But there are still important differences."In the government's proposed scheme, permits could still be traded among emitters and potential emitters, even in the period when there is a fixed price. That does not occur under a carbon-tax regime."

Sources: Garnaut Review (2011); Productivity Commission: Carbon Emission Policies in Key Economies (June 2011); Radio National Rear Vision (Jan 12, 2011); The ConversationTags: climate-change, emissions-trading, australiaFirst posted Thu Jul 7, 2011 12:43pm AEST