This document discusses carbon taxes and their impacts. It covers how carbon emissions are causing climate change and environmental damage costing $200 billion annually. Two ways to reduce emissions are direct carbon taxes or cap and trade systems between companies. While carbon taxes aim to reduce negative externalities, they can increase costs for businesses and households. A tax of $23 per tonne in Australia had little environmental impact but did increase electricity and gas costs slightly for households. The conclusion argues the focus should be on developing green energy technologies through research instead of just controlling emissions.

1. CARBON TAX
Swapnil | Gaurav | Team | Suhail

2. SNAPSHOT
1. Introduction
2. Impacts on environment
3. Impacts on economy
4. Impacts on business
5. Impacts on households
6. Conclusion

3. INTRODUCTION TO
CARBON TAX

4. FACTORS OF PRODUCTION

5. WHAT IS LAND?

6. LET ME TELL YOU A
STORY

7. I WAS LIVING HERE

8. LIFE WAS BAD :(

9. I USED MORE RESOURCES

10. LIFE GETS BETTER

11. NOW, I OVERUSED THE RESOURCES

12. I’M RICH AND GREEDY FOR MORE!!!

13. I WIN, EVERYBODY LOSES

14. “Each man is locked into
a system that compels
him to increase his herd
without limit- IN A WORLD
THAT IS LIMITED”
-
~ Garret Hardin

18. HOW
HOW CARBON
EMISSION
CLIMATE
CHANGE
IS DESTROYING
THE EARTH

19. GLOBAL WARMING

21. WHAT THIS MEANS FOR
HUMANS?
CAUSING 200 BILLION IN
DAMAGE – SAME AMOUNT AS 4
YEARS OF WAR

22. 2 WAYS OF REDUCING EMISSION
1. Direct carbon taxing
2. Cap and trade with
other companies

23. DIRECT TAX
Carbon tax is based on economic principle
of negative externality

24. CAP AND TRADE WITH OTHER
COMPANIES
Company A
Company B

25. WHAT
THIS MEANS
FOR THE
ENVIRONMENT?

26. WHAT THEY THOUGHT
WOULD HAPPEN…

27. KYOTO PROTOCOL

28. GROWTH AND THE ENVIRONMENTAL
KUZNETS CURVE

29. We need to spend
180 billion
per year globally to
maintain the
protocol

30. It would reduce
the temperature by
0.004 °C
by end of
century

31. EUROPE 2020 POLICY

32. We need to spend
250 billion
per year

33. It would reduce
the temperature by
0.05 °C
by end of
century

34. WHAT THIS MEANS FOR THE ECONOMY?

35. Increase in selling price

36. FROM ASSET TO LIABILITY
Carbon-emitting industry would be greatly affected
by this larger decrease in demand
They become a
HUGE BURDEN
on economy

37. LOSING THE CUTTING EDGE
Increase in carbon price
Higher cost for exports
The country loses trade advantages

38. WHAT THIS MEANS FOR THE
BUSINESS?

40. “The Australian Securities & investment
commission reports there were 10,632
company which have closed down 12%
higher than GFC”

41. WHAT THIS MEANS FOR THE
HOUSEHOLDS?

42. Effect of carbon price on expenditure
($23/ ton)
Price of electricity increases by
10%
Price of gas increase by
9%
Price of food increase by
less than 5%
Overall effect is just
0.7%

43. HOUSEHOLDS SPEND MORE
ON BEER (2.2%) THAN THEY
DO FOR ELECTRICITY (2.1%)

44. FINDINGS - AUSTRALIA
Carbon tax of $23 is not enough
$100 per tonne of carbon tax needed to be charged to
make an impact on current situation
This will collapse the
economy

45. GLOBAL NEW INVESTMENT IN
RENEWABLE ENERGY
Source:
UNEP,Bloomberg

46. CONCLUSION
We have been focusing on controlling the carbon
emission
Instead, we should focus on solving the problem by
research on green energy
“Every dollar on R&D would avoid $11 of climate
damage”

47. INNOVATE OR PERISH