CO2 (carbon dioxide) and other greenhouse gas (GHG) emissions are a key cause of climate change. Australian business leaders and politicians, however, seem to be unable to agree on the best way (i.e. best policies) to reduce our emissions.
Imagine you are an economic consultant and you have been engaged by the Federal Minister for Energy and Emissions Reduction (The Hon An-gus Taylor MP) to answer the questions posed below. Assume he is new to the role and assume he does not have a background in economics. These assumptions mean that, as part of your response, you may need to carefully explain to him the economic theory underpinning some of t-he answers. This may include the use of diagrams and it may also require the inclusion of definitions as appropriate.