This assessment comprises of a 3000-word research paper on the following topic:
Green House Gas (GHG) Emissions and Economic Growth
The objective of writing this assignment is to assess how well you are able to apply the
theoretical models covered in class to issues of GHG emissions and suggest appropriate
policy measures. In this assignment you would be required to demonstrate understanding
of the theoretical models covered in the textbook, along with contemporary journal articles,
and create a reference list using APA style of referencing.
Your analysis should cover in detail the following aspects:
a) Explain how greenhouse gas emissions constitute a negative environmental
externality using theory and graphical analysis. (10 marks)
b) Evaluate the relationship between economic growth and greenhouse gas emissions
using the Environmental Kuznets Curve (EKC) hypothesis. Plot the EKC using data
on carbon emissions and GDP per capita from World Development Indicators for a
country of your choice between 1990-2010. Analyse the graph and comment on
whether the EKC hypothesis holds true in this case. Use relevant academic literature
in your analysis. (20 marks)
Assessment Brief
Page 2 of 7
c) Critically analyse the efficacy of the tradable pollution permits (cap and trade) as a
means to reduce greenhouse gas emissions, using relevant graphs and literature
(20 marks)
d) Critically analyse the efficacy of the Pigouvian taxes and subsidies as a means to
reduce greenhouse gas emissions, using relevant graphs (20 marks)
e) Discuss three ways in which businesses can help to move towards a green
economic growth trajectory so that the prerogatives of continued economic growth
and environmental protection may be balanced. Evaluate the Deposit Refund
Scheme covered in Lecture 2 using graphs. (20 marks)
f) Your assignment should include an “Introduction” section at the beginning and
“Conclusion” at the end. More specifically, the “Introduction” section should briefly
explain the content of your assignment and a short description of its objective. In this
section you are expected to concisely link your assignment to the existing relevant
literature (i.e.: at least to one economic article previously published on the topic). The
“Conclusion” section should summarize your assignment and emphasize your
findings. (10 mar
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