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Climate Change and Carbon Dioxide (CO2) Essay

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Climate change or colloquially known as global warming, now pose a new threat to civilization as the levels of greenhouse gases (GHG) are soaring to new levels. The most significant contributor to greenhouse gasses would be Carbon Dioxide (Co2). The levels of Carbon Dioxide (Co2) gas have risen to levels civilization has not seen before. As such, the effects of these levels are not known to civilization as data gathered from the ice cores drilled in the Antarctica only shows data up to 650,000 years ago. However we can conclude that present CO2 concentrations are higher compared to any time in the last 650,000 years (IPCC 2007). Current carbon dioxide concentrations are hovering around 389 parts per million (ppm) as of September 2011, …show more content…

Therefore based on the worrying statistics above, we have to take precautionary measure to ensure the greenhouse gases, more specifically carbon dioxide levels do not increase further.

In Australia, there is an emerging consensus that the government should take further actions to help mitigate and combat climate change. The current most accepted policy by government is the introduction of a carbon tax followed by an ETS in 2015. However we are focusing on the carbon tax in this essay and not the ETS. Here is a brief explanation of the dynamics of a carbon tax. A carbon tax is a tax on energy sources, which emit carbon dioxide (Co2). Therefore, carbon taxes address the problem of negative externality. Externalities are the subsequent effects when individual production or consumption of a particular good or service imposes costs or benefits on others. Therefore negative externalities are effects, which pose harm to others without their direct interaction (Basic Economics 2011). However, usual market practices and transactions do not reflect these cost and benefits in the prices involved in the transaction, or take into account in their transaction decision. Therefore this is a form of market failure. By imposing a cost on these negative externalities, the hidden cost can be addressed. Ultimately the purpose of a carbon tax is to reduce emissions of carbon dioxide and therefore reduce

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