To combat climate change, governments should levy taxes on products associated with high carbon emissions.

Economics
theory assignment (500 words)

“To combat climate change, governments should levy taxes on
products associated with high carbon emissions.”

Relying on economic theory models covered in class, discuss the statement above. Provide provide arguments in favour of the
statement.

Possible concepts to look at : Market equilibrium,
negative externalities, implicit and explicit costs, Marginal private cost
(MPC) and Marginal social cost (MSC) and their graphs, tax graphs and
deadweight losses, allocative efficiency. Demand and supply diagrams etc.
You could show that tax imposed on producers could shift supply curve to the
left with the diagram. These are just a few ideas, but it needs to be made into
a coherent argument with a Lot more information.