Climate Change Economics and Policy

Climate Change Economics and Policy

Climate Change Economics and Policy 1
Contents
Introduction......................................................................................................................................2
Overview of the sector.....................................................................................................................3
Predicted climate impacts on the sector...........................................................................................3
Rise in temperatures....................................................................................................................4
Impacts of carbon policies (C tax, DA comparison).......................................................................4
Risks and opportunities in a C constrained world...........................................................................6
Adaptation strategies.......................................................................................................................7
Conclusion and recommendation....................................................................................................9
References......................................................................................................................................10

Climate Change Economics and Policy 2
Introduction
The aim of the report is to compare and contrast the 2 policies and analyze the possible impact of
both the strategies on the certain business circumstance or a sector by applying the information.
The policy on which the comparison is based is related to the Carbon Tax which is recently by
Australia in the year 2012. The report is based on the Carbon Tax of Australia and the sector that
has been selected for the analysis is Agriculture. It also includes the impacts of carbon policies
on the sector. The risks and opportunities in a C constrained world related to the Agricultural
sector will be discussed in the report. Along with this, the report includes the adaptation
strategies for the agriculture sector in Australia.

Climate Change Economics and Policy 3
Overview of the sector
Australia is a country which is largely dependent on its agricultural sector. The country is
commonly known as the major agricultural producer and exporter of forestry and fishing. This
sector provides the employment to approx. 325,300. Agriculture in the today’s world is very
sophisticated and highly technical industry. The technology has contributed a lot to make the
industry most innovative and effective industries of Australia. The farmers in Australia produce
approx. 91% of the daily domestic food. On average the farmer of Australia exports 60% of their
crop to the other nations (Export, 2017). This shows that this sector of Australia contributes to
the economy of Australia. The country produces enough food to feed more than 60 million
people. This shows that this sector is one of the important sectors for the government of the
country.
Predicted climate impacts on the sector
A recent study by the Australia Bureau of Agriculture and Resource Economics and Sciences
(ABARES) confirms that the changes in the climate lead to the adverse effect on the
productivities of cropping farms basically in south-western Australia and South-eastern Australia
(Gary, 2017). The climate change includes the change in the hotter and drier areas of the country
that leads to the issues. Australia witnesses the average temperature rises more than 1.5 degrees
Fahrenheit since the last century. Considering the data from CSIRO, Australia's national science
agency the rise in the global emissions continue to be a challenge for the sector (Patterson,
2015). The farmers need good rainfall for some crops and less for other and they want the
temperature to be marinated for growing the crops in Australia. Though, the change in the