Assessment
This assessment comprises of a 3000-word research paper on the following topic:
Greenhouse Gas (GHG) Emissions and Economic Growth
The objective of writing this assignment is to assess how well you can apply the theoretical models covered in class to issues of GHG emissions and suggest appropriate policy measures. In this assignment you would be required to demonstrate understanding of the theoretical models covered in the textbook, along with contemporary journal articles, and create a reference list using APA style of referencing.
Your analysis should cover in detail the following aspects:
- Explain how greenhouse gas emissions constitute a negative environmental externality using theory and graphical analysis.
- Evaluate the relationship between economic growth and greenhouse gas emissions using the Environmental Kuznets Curve hypothesis, demonstrate this relationship graphically using relevant data on carbon emissions [World Development Indicators] and per capita income for any country of your choice [World Bank].
- Critically analyse the efficacy of the tradable pollution permits (cap and trade) as a means to reduce greenhouse gas emissions, using relevant graphs, theory and empirical literature.
- Critically analyse the efficacy of the Pigouvian taxes and subsidies as a means to reduce greenhouse gas emissions, using relevant graphs and theory (20 marks) e) Your assignment should include an "Introduction" section at the beginning and "Conclusion" at the end. More specifically, the "Introduction" section should briefly explain the content of your assignment and a short description of its objective. In this section you are expected to concisely link your assignment to the existing relevant literature (i.e.: at least to one economic article previously published on the topic). The "Conclusion" section should summarize your assignment and emphasize your findings.
Brief Summary of the Assessment Requirements
The assessment is a 3000-word research paper on “Greenhouse Gas (GHG) Emissions and Economic Growth.” The purpose is to evaluate the student’s ability to apply economic theory to real-world environmental problems and propose relevant policy solutions.
The assignment must demonstrate:
- Understanding of negative environmental externalities through theory and graphical analysis.
- Use of the Environmental Kuznets Curve (EKC) to explain the relationship between economic growth and GHG emissions, supplemented with graphs using World Bank data for any chosen country.
- Critical evaluation of tradable pollution permits (cap-and-trade) using theory, graphs, and empirical literature.
- Critical analysis of Pigouvian taxes and subsidies, supported with theory and graphical tools.
- Proper Introduction and Conclusion sections linking to existing literature.
- All references must follow APA style.
How the Academic Mentor Guided the Student Through the Assessment (Step-by-Step Approach)
Step 1: Understanding the Topic and Setting the Structure
The mentor first explained the core objective of the assessment—connecting economic theory with environmental policy.
They guided the student to structure the paper as follows:
- Introduction
- Negative Environmental Externality
- EKC Relationship Using Data
- Tradable Pollution Permits
- Pigouvian Taxes and Subsidies
- Conclusion
- APA Reference List
Step 2: Writing the Introduction
The mentor instructed the student to:
- Introduce the theme of GHG emissions and economic growth.
- State the purpose of the paper.
- Briefly reference at least one relevant economic article.
- Outline the sections to follow.
This established a clear roadmap for readers.
Step 3: Explaining Negative Environmental Externalities
The mentor guided the student to:
- Define externalities using microeconomic theory.
- Illustrate socially optimal vs. market equilibrium outcomes graphically.
- Highlight how GHG emissions impose costs on society not reflected in market prices.
This ensured a strong theoretical foundation.
Step 4: Analysing the EKC Using Real Data
The mentor helped the student:
- Select a country and download carbon emissions and per capita income from World Development Indicators.
- Construct a graph showing the EKC pattern.
- Evaluate whether the chosen country follows an inverted-U relationship.
- Integrate empirical insights from literature to strengthen the analysis.
Step 5: Evaluating Cap-and-Trade
The mentor advised the student to:
- Explain the theory behind tradable pollution permits.
- Use supply–demand diagrams for permits.
- Discuss real-world examples from empirical studies.
- Provide a balanced critique, highlighting strengths and limitations.
This ensured both theoretical and practical evaluation.
Step 6: Analysing Pigouvian Taxes and Subsidies
Guidance included:
- Using diagrams to show how taxes internalize external costs.
- Explaining how subsidies encourage cleaner technologies.
- Critically comparing taxes to other policy tools.
- Using literature to support arguments.
This helped the student build a comprehensive policy analysis section.
Step 7: Writing the Conclusion
The mentor instructed the student to:
- Summarize key findings.
- Restate the implications of the analysis.
- Reinforce how theory and data contributed to the conclusions.
Step 8: Final Review and APA Referencing
The mentor ensured:
- All sources were correctly cited.
- The entire paper met word-count requirements.
- Flow, clarity, and academic tone were maintained.
Final Outcome and Learning Objectives Covered
The final output successfully:
- Met all assessment requirements, including theory, data analysis, critical evaluation, and structured writing.
- Applied microeconomic models to real-world environmental challenges.
- Used empirical data to validate theoretical concepts (EKC).
- Critically compared policy instruments (cap-and-trade vs. Pigouvian tools).
- Demonstrated proficiency in academic writing, research skills, and APA referencing.
Learning objectives achieved:
- Understanding of environmental externalities.
- Ability to apply economic theory to contemporary issues.
- Skills in graphical and data-based economic analysis.
- Ability to evaluate and compare environmental policy mechanisms.
- Academic writing and research competence.