Discuss the rationale and the theoretical underpinnings of a carbon tax and compare it with the Direct Action Plan.

The Direct Action Plan and a Carbon Tax are examples of different policies to address climate change and are broadly representative of policies used by governments globally. Australia has used both types of policies allowing us to analyse the effectiveness of each policy at reducing climate change. Compare and contrast these two policies and evaluate the likely impacts of both policies on your selected corporate case or a sector by applying the knowledge gained from the course. In your response, as a minimum, you should:

1) Describe the predicted climate change impacts on your chosen case or sector.

2) Discuss the rationale and the theoretical underpinnings of a carbon tax and compare it with the Direct Action Plan.

3) Identify various risks and opportunities for the chosen sector or firm in a carbon constrained world.

4) Outline appropriate adaptation strategies.