Reference no: EM132674086

49029 Environmental Policy for Energy Systems Assignment - University of Technology Sydney, Australia

ENERGY PLANNING AND POLICY PROGRAM

PART A - The advance of climate change has focussed attention on the GHG footprint of the energy industry. Energy is needed for all human endeavours and is, therefore, an essential resource. Accordingly, there has been a concerted effort around the world at moving away from fossil fuels to renewable energy sources such as solar and wind power. This, it is argued, will help us avoid dangerous climate change if implemented within an appropriate time.

Environmental problems are often referred to as "wicked problems", in that our resolution of one issue can easily lead to, or exacerbate, another one. Considering the energy - economy - environment interactions studied in class, and by reviewing the literature arguing for and against renewable energy sources, identify some environmental risks that may be associated with the introduction of renewables. How might the policymakers mitigate these risks? (No more than 500 words)

PART B - Environmental degradation (e.g. pollution) are often not considered as a cost of producing a good or a service by the producers because they are deemed to be "externalities", i.e. these costs are borne by a third party not associated with the business transactions. Pigouvian taxes are taken to be one way to "internalize" the externality and thereby provide incentives to businesses to opt for practices that do not degrade the environment. Like most such instruments, Pigouvian taxes have their supporters and their detractors.

Research the literature to identify and discuss the advantages and the disadvantages of a Pigouvian tax. Using an example of its application, comment on how effective such a tax would be as a remedy in the sorts of cases discussed in your example. Indicate what factors, if any, might make the tax ineffective. (No more than 800 word)