LM7 - Carbon Tax and Emissions Trading Schemes

Substantial scientific evidence shows that global warming has become a threat that requires urgent action to mitigate global climate change. The first international treaty that attempted to reduce the impact of climate change was the Kyoto Protocol, signed on 11 December 1998. There is no mandatory prescription for the policy framework that might be used to achieve GHGs emission control targets under the Protocol. Once a country has ratified the Protocol, it may develop its own carbon policy, such as a carbon tax or a specific policy for heavy polluting industries. In this topic, we will look at Carbon Tax Scheme and Emission Trading Scheme (ETS),
which includes what Carbon Tax is, Carbon Tax levy, the pros and cons of Carbon Tax, ETS, the pros and cons of ETS, and the performance of these policies in different countries.

Learning outcomes for this module
1. Identfy Carbon Tax in terms of its mechanism, pros and cons, and its effectiveness in different countries.
2. Discuss ETS in terms of its mechanism, pros and cons, and its effectiveness in different countries.
Tasks to complete in this module :
1. Watch the lecture materials, lecture video and slides, and summarise the key learnings.
2. Read the learning guide and post any questions on the Q & A discussion board.
3. Read this week's readings and take notes of the important points