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This assessment comprises of a 3000-word research paper on the following topic: Green House Gas (GHG) Emissions and Economic Growth The objective of

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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