Climate Change In Australia Essay

Introduction

Climate change can be observed globally at a progressively alarming rate. The most visible changes can be seen in the global average temperature whereby the Arctic warming is at almost double the global average rate (CITE). Observed changes in temperature have been consistent with the general warming trend - hot days and hot nights have been occurring more frequently and cooler nights are occurring less often.

There is major evidence that climate change is human-induced/anthropogenic from the increase in greenhouse gas (GHG) emissions since the industrial revolution (CITE). The increase in the atmospheric CO2 concentration by 40% is a result of burning fossil fuels and deforestation (CITE). This has caused warming of the earth

Climate change is a negative externality – the biggest government failure with an externality is on GHGs. The concern of the market failure related to GHG emissions has economists arguing that policy intervention to increase the price of GHG emission will stimulate innovation of low-carbon technologies and provide guidance for economic decision-making when emitting (CITE).

Mitigating climate change will benefit the public by limiting the rate long-term climate change. Left unattended, Australia’s economic prosperity poses major risk and climate change will impose future economic costs on society. The overall benefits of early action to reduce GHG emissions outweigh the initial costs. Utility will increase over time as a result of mitigation; costs are greater than the benefits without mitigation. Mitigation is also an insurance policy due to uncertainty for future climate change; catastrophic events and security in supply investments. Reducing emissions is necessary to maintain Australia’s obligations under Kyoto, which is to reduce carbon emissions of five per cent below 2000 levels (CITE). Having the right policies put in place, allows for large reductions in GHG emissions at relatively low