It is evident that the increasing carbon prices will definitely flow through the consumer as household is one of the largest users of the conventional energy. The increase in prices of the fuel will disturb the household budgets; the prices change for the essential goods will take place due to the continuous rise in the carbon prices…
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A significant economy reform program was announced by Australian government for securing the future with relatively clean energy. It is a transition plan that will transform the economy of the country gradually; it will be implemented by taking initiatives in four key areas namely carbon pricing, non-conventional sources of energy in place of conventional energy, enhancing the efficiency of energy consumption and management as well as land reforms. But the foremost component of this transition plan is the carbon price mechanism and several complementary measures along with the assistance plan for the household and large emitters of the pollutants in the current economic structure.
As the time passed by, the business as well as household focused on the relevant details of this plan and researchers forecasted the consequences and impacts of this plan extensively. The current essay models the impacts of the proposed mechanism of carbon prices on the household economy by discussing the consumer behaviour theories and keeping in view the fact that proposed plan promises to return most part of the revenue generated through carbon price mechanism to the household.
A package of measures also came along this plan; these measures outline the policy of the Government to curtail the instantaneous effects of carbon pricing mechanism on the household economy....
$ 23, $ 24.15 and $ 25.40 for first, second and third years respectively. The second phase will commence on 1st July 2015 and carbon price remains flexible during this phase. The determination of the prices will be based on the Emission Trading Scheme (ETS) along with the transitional cap as well as floor implementation. It is also determined in the proposed plan that carbon permits will be sold to the pollution emitters and the revenue generated through these sales will be invested for encouraging the production and consumption of clean energy. It will also ease the cost burden coming up with the transitional phase. Various direct and indirect methods will be devised to assist different sectors of the economy including the household1. In light of this brief introduction of the carbon price mechanism, the following section of this essay discusses the continuously rising prices of the energy during the first phase and their impacts on the economic well being of household with special emphasis on various theories of consumer behaviour. The effect of rising energy prices for the economic wellbeing of households It is evident that the increasing carbon prices will definitely flow through the consumer as household is one of the largest users of the conventional energy. The increase in prices of the fuel will disturb the household budgets; the prices change in the prices of the essential goods like food, clothing, and land for shelter will take place due to the continuous rise in the carbon prices during the first phase of the implementation of this plan (Kardes et al., 2010). On the other hand, the supply demand theory suggests that the demand for carbon fuels will be discouraged due to the increasing prices of the carbon fuels. The following
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Australia aims to reduce the carbon emissions up to 90 % from the current value till the 2050. Although the proposed reforms in the economic structure promise a safe and green future for the country yet it has several implications that must be considered by all the stakeholders.
Imagine that you are a manager at a delivery service and you are creating a report to project the effects on your company of rising gas prices in the next ten years. Using the preceding statistical analysis as your basis and outside scholarly resources to support your claims
A study suggests that every $0.25 increase in gas prices leads to a removal of $25 billion from the US economy.(Micheal Kopley, 2011). Higher gas price means that individuals have less money to spend on other goods. The decline in demand for goods translates into loss of jobs.
According to the report many people are of the view that oil price increase may affect only the vehicle owners. In fact oil price increase can destroy family budget drastically since the prices of the households are heavily dependent on the prices of oil. The transportation of Households from one place to other needs the services of vehicles.
On the contrary Australian government has proposed to compensate for such a price mechanism to the low income households by exempting tax benefits. Objective of the paper is to analyse the impact of such a price mechanism on the following parameters: 1. Impact of high energy prices on the economic wellbeing of households.
RESULTS: The rising oil prices do not affect the world economy in a macroeconomic stance but the negative impacts are experienced by the less developed, oil dependent economies including the low-income households. The benefits of the increase are evident on the conservation of energy, utilization of renewable sources of energy, reduction of pollution and traffic congestion.
This policy response put an end to cheap food. The world price of wheat rose to over $400 a tonne in September 2008. This is a big jump from $200 during the summer months. The price of maize (corn) exceeded $175 a tonne. Its current price represents an increase of 50% compared to its cost in 2007.
out the United States is insightful as it helps compare the extent of the problem in other parts of the world in order not to create the impression that wind energy effect mitigation is an American problem only. The students’ use of information from an authority such as
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