key economic issue

Students are required to prepare an essay (1250 words) on a key economic issue for a Minister or CEO who has limited time to research the economic problem or issue for themselves, as detailed in the research essay documentation. The essay should provide the reader with an overview of current economic thinking and research on the economic issue, briefly detailing the supporting economic theory. It is a requirement of this assessment item that students provide appropriate in-text citations and a reference list inclusive of full bibliographic details of all cited research materials (e.g. academic journals, data etc.). The required referencing style is APA.

1 BSB113 Economics Semester 1 2016 Assessment 2: Research essay Submission date Thursday 12th May 2016 12 noon THROUGH SafeAssign VIA THE BSB113 BLACKBOARD WEBSITE SEE BB ASSESSMENT 2 FOLDER FOR DETAIL Please note that you are only required to submit an e-copy of your work through SafeAssign via the BSB113 Blackboard website. This document contains important information about your assessment. You will need to read it carefully to understand what is required. In addition to reading this document you are strongly advised to read the “Frequently asked Questions about Assessment 2” document (refer to the Assessment 2 folder on Blackboard). Work that has been submitted for assessment in BSB113 in previous semesters cannot be resubmitted for assessment. If identified, re-submitted work from previous semesters will be treated as plagiarism. 2 Table of Contents Background…………………………………………………………………………………………………………………………………….. 3 References …………………………………………………………………………………………………………………………………. 4 Research task…………………………………………………………………………………………………………………………………. 5 Instructions for research essay………………………………………………………………………………………………………….. 7 Your audience’s background knowledge in economics……………………………………………………………………… 7 Informed critical content………………………………………………………………………………………………………………… 7 Maximum word length…………………………………………………………………………………………………………………… 7 Presentation and submission ………………………………………………………………………………………………………… 7 Researching for your research essay……………………………………………………………………………………………… 8 Reading hints and tips ………………………………………………………………………………………………………………….. 9 Helpful advice on writing your research essay …………………………………………………………………………………. 9 Further support for Assessment 2 ………………………………………………………………………………………………… 10 Criterion Reference Assessment for Assessment Item 2: research essay …………………………………………. 11 3 Background You are on work experience at Coles QLD Head Office. Over a morning tea break a discussion begins about the bad press plastic bags have been getting. The negatives of the impact of plastic bags on the environment and marine creatures are well known. However, a lesser known impact was that the average Australian is ingesting 11,000 pieces of plastic each year from seafood. The last point is met with disbelief and someone in the room pulls up a short video on their smart phone by Dave West from the Boomerang Alliance. A number of people that had brought in tuna sandwiches for lunch quietly discard them in the bin. Next, a smart phone “fact” battle starts. “Facts” are thrown around the room with wild abandon. For example, an estimated 3.76 billion (equivalent to 2 700 tonnes) of plastic bags are disposed of at landfill sites every year, and it is estimated that around 50 million plastic bags enter the Australian waterways (What is the problem, 2015). However, there is also plenty of “evidence” of worse plastic bag polluters than Australians. An article is cited that seemingly points the finger at China as being the worse plastic polluter (Jambeck et al.2015). Someone else responses by saying that care needs to be exercised when looking at Australian data. Whilst ABS statistics would seemingly suggest that we are diligent at recycling and been getting better at it over time, for many Australians the idea of recycling plastic bags is to use them as bin liners. Unfortunately, this does not align to the definition of recycling as repeated use of conversion into long lasting materials (Boomerang Alliance, 2015) The conversation takes a different turn when it is noted that Environment Minister Steven Mileson is pushing to ban plastic bags, bringing Queensland in line with SA, Tasmania, ACT and the NT. At the Federal level a marine plastic pollution Senate inquiry has also called for an immediate action on plastic bags (Parliament of Australia, n.d.) The discussion now focuses on the best policy to reduce the impact of plastic bags in the environment. You remember that your lecturer in BSB113 had spoken about how, in some markets where the negative effects are not captured in the price of the good it can lead to over consumption of the good and an inefficient equilibrium. The lecturer had then demonstrated how a tax on the good can move the market back to a socially efficient level of consumption. Confident of your understanding of the economics you say (to the now captivated tea room audience – talking about economics always has that effect on people) that a plastic bag tax may be a potential solution. Someone argues that a ban of plastic bags would be a more effective policy. You acknowledge that may be the case, but without a proper economic analysis it would be difficult to conclude one way or another (nice save!). 4 References Boomerang Alliance, (2015, August). Facts on plastic. Retrieved from http://www.boomerangalliance.org.au/the_facts_on_plastic_bags Convery, F., McDonnell, S., & Ferreira, S. (2007). The most popular tax in Europe? Lessons from the Irish plastic bags levy. Environmental and Resource Economics, 38(1), 1-11. Retrieved from https://wiki.umn.edu/pub/ESPM3241W/S12TopicSummaryTeamFour/Lessons_from_Irish_Plastic_bag_le vvy.pdf Cormack, L. (2016, February 17). Marine plastic pollution senate inquiry targets Australian ocean pollution. The Sydney Morning Herald. Retrieved from http://www.smh.com.au/environment/marine-plasticpollution-senate-inquiry-targets-australian-ocean-pollution-20160217-gmwge9.html#ixzz43mEjpJgZ Dikgang, J., Leiman, A., & Visser, M. (2012). Analysis of the plastic-bag levy in South Africa. Resources, Conservation and Recycling, 66, 59-65. Retrieved from https://www.researchgate.net/profile/Johane_Dikgang/publication/275345140_Analysis_of_the_plasticbag_levy_in_South_Africa/links/55394c550cf2239f4e7d8f52.pdf Homonoff, T. (2015, November 17) Paper or plastic? How disposable bag bans, fees and taxes affect consumer behaviour. The Conversation. Retrieved from https://theconversation.com/paper-or-plastichow-disposable-bag-bans-fees-and-taxes-affect-consumer-behavior-48858 Jambeck, J.R. Geyer, R. Wilcox, C. Siegler, T.R. Perryman, M. Andrady, A. Narayan, R., Law, K.L. (2015). Plastic waste inputs from land into the ocean. Science, 347:(6223), pp. 768–771. Retrieved from http://science.sciencemag.org/content/347/6223/768.full Marszalek, J. (2016, Feb 24) States band together on plastic bag ban. Herald Sun. Retrieved from http://www.heraldsun.com.au/subscribe/news/1/index.html?sourceCode=HSWEB_WRE170_a&mode=pr emium&dest=http://www.heraldsun.com.au/news/national/states-band-together-on-plastic-bag-ban/newsstory/630fc0dfec24d1b5dda89c541a3efe32?memtype=anonymous Parliament of Australia. (n.d.). The threat of marine plastic pollution in Australia. Retrieved April 07, 2016, from http://www.aph.gov.au/Parliamentary_Business/Committees/Senate/Environment_and_Communications/ Marine_plastics What is the problem? (2015, May) Retrieved from http://www.cleanup.org.au/au/Campaigns/plastic-bagfacts.html 5 Research task Your musings were overheard by the visiting Coles CEO. The CEO was impressed by your insights and has asked that you write a critical economics overview of a plastic bag tax. You email your u
nit coordinator for Economics desperate for some help. Louisa suggests breaking your report down as follows: 1. A brief overview of issues related to plastic bag consumption (and their subsequent disposal) AND the current and proposed changes to policy in Australia. Hint: As an economist, we generally start by framing the problem. We also refer to this as setting the context. In this part of your essay, you need to clearly articulate what the issue is from a societal perspective. This is not simply a case of stating “I think it is a problem because …”. You need to present and information (including data) on the impact of plastic bag pollution etc. and the proposed changes to policy. 2. A description of the relevant economic theory to show how a plastic bag tax would decrease plastic bag consumption to a socially efficient level. Hint: So what is the economic theory that underpins your economic analysis? We have been pretty focused on developing one key theory so far this semester. Remember that “X” marks the spot! In this case it is over consumption of a good that is potentially leading to a socially inefficient outcome. To correct for that, you can use an economic theory to demonstrate how decreasing plastic bag consumption will move the market to a socially efficient level of consumption. And yes — you will be expected to include a relevant graph of the economic theory! In your theoretical model assume that the price of plastic bags prior to the tax is positive. (Just because plastic bags are given “free” at the checkout, does not mean that the price of a plastic bag to a customer is zero. The cost of a plastic bag, whilst small, is positive and included in the price of goods sold by the retailer). 3. A critical analysis, informed by research, as to whether a plastic bag tax will be effective in practice in correcting the market failure. Hint: You are working with a word limit so you will need to be selective and concise with your arguments. Again, your analysis needs to be objective, we expect you to draw on appropriate academic literature and/or present empirical evidence to support your arguments about either the limitation of the proposed policy and suggest alternative policies that may be more effective or appropriate. To keep it manageable, Louisa has suggested your critical analysis should include:  a brief discussion on the potential limitations of the plastic bag tax with reference to o an example of the plastic bag tax in practice (e.g. Ireland, Wales, South Africa etc. note this list is not exhaustive)  ONE policy alternative o keep it simple — give an overview of how the policy will work and a summary of the potential strengths and weaknesses of that policy. Note, you are not required to say that the alternative policy is better than a plastic bag tax — simply that it addresses the problem in a different way. Louisa also recommends that:  you write an unbiased informed critical economic essay and not a political document  your essay is academically rigorous with references to relevant data and academic literature  you do not get drawn into reporting emotive arguments (interesting as they are). 6 Note that there is a list of references provided in the “background” section to this document. This is not an exhaustive list of references. You are also expected to research the literature yourself (refer to the Criterion Reference Assessment (CRA)) table at the end of this document). 7 Instructions for research essay Your audience’s background knowledge in economics Whilst the CEO of Coles does not have any formal economics training, he has picked up an understanding of economic theory and terminology. He is regularly exposed to documents drafted by economists and follows contemporary economic analysis in the media. For example, he is a regular reader of publications such as The Economist and takes a keen interest in economic articles published by economists for a wider audience in The Conversation (online) and Australian Policy Online. Informed critical content You are required to include a range of relevant scholarly sources that supports the flow and critical content of the discussion. All sources cited must be referenced using APA style. For further information refer to Cite|Write http://www.citewrite.qut.edu.au/ If in doubt about how to cite and reference a source please seek help from the subject librarian. Maximum word length Your research essay has a MAXIMUM WORD limit of 1250 words (excluding your reference list – but inclusive of in-text citations). A suggested word count breakdown (to get you started) is presented below for the breakdown of the research essay task (you may deviate from this is practice): 1. introduction …. 100 words 2. setting the context … 200 words. 3. a description of the relevant economic model… 425 words 4. a critical analysis of the key arguments … 425 words 5. conclusion …100 words Note that your report should also include both an introduction and conclusion and should be in proportion to the length of the narrative being written (in other words don’t overdo it in the intro or conclusion as that means less words for the important bits). The above word count is a starting point. Your actual word count for each section will be specific to your individual essay (informed by the weighting in the criteria reference assessment table at the end of this document). Presentation and submission It is expected that you will present your document in the form of a short essay. No appendices are allowed. If appendices are submitted they will be disregarded by the marker. You are advised of the following stylistic requirements:  use font type Arial, font size 10 (minimum)  line spacing should be single or no greater than1.25  margins should be set at 2.3cm  all diagrams should be reproduced either by hand or imbedded in your document using a draw tool. For example, Paint or the draw tool in Word,1 or Excel. If you draw the diagrams by hand you will need to scan them so they can be incorporated in your SafeAssign submission. Cutting and pasting of diagrams from other documents is not acceptable and will be marked as copying (refer to CRA).  all pages should be numbered (bottom footer right hand side) and include your student number (top header, right hand side)  include a title page. This should include your name, student number and tutor’s name. 1 See http://office.microsoft.com/en-au/word-help/draw-a-curve-or-circle-shape-HA010208316.aspx?CTT=3#BM14. There are also a lot of good instructions on the internet (including Youtube) on how to construct diagrams using the Draw tool in Word. 8 Final submission of your work is through SafeAssign via the BSB113 Blackboard website. You should also keep a copy of your work for your own records. Assessment submitted after the due date without an approved extension will not be marked and will receive a grade of 1 or 0%. If special circumstances prevent you from meeting the assessment due date, you can apply for an extension. If you don’t have an approved extension you should submit the work you have completed by the due date and it will be marked against the assessment criteria. Researching for your research essay Your work should be informed and supported by appropriate literature. Your research (or reading) of this literature informs your analysis, arguments, critique, conclusions etc. Therefore, the quality of your research will directly influence the quality of your work. In academia “appropriate literature” means that you should be principally researching scholarly sources. Examples of scholarly sources include:  Academic journals  University working papers/publications  Government and related departments/organisations reports (e.g. Australian Bureau of Statistics (ABS))  International economic organisations articles and reports (e.g. OECD, United Nations and World Bank)  Central Bank articles and reports (e.g. Reserve Bank of Australia) Examples of high quality sources of relevant data would include ABS, OECD, World Bank, Government reports etc. A common theme of all of th
e above published literature is that it is peer reviewed. Peer review is a process that is used to ensure that published work represents the best scholarship currently available (and is also technically correct, not misleading etc.). In contrast, non-peer reviewed literature represents the opinion of the authors with only their guarantee that it is the best work possible. Reliance on non-scholarly sources as part of your research is to be avoided. Examples of non-scholarly sources include:  newspaper reports  magazines articles  non-peer reviewed articles and reports (be careful of private consultation reports, political papers etc.)  subject-based dictionaries and/or glossaries (including Wikipedia)  personal blogs/websites Non-scholarly sources do have a role. As a matter of course you should be informing yourself about contemporary issues by reading a range of non-scholarly sources (e.g. by reading the newspaper). Within nonscholarly sources there is a hierarchy of more acceptable publications that you should engage with. These include good quality newspapers (e.g. The Australian and The Financial Review) and specialist magazines (e.g. The Economist, The Conversation (online)). Similarly, Wikipedia is a great starting point for looking up definitions or getting an overview of a subject. However, using Wikipedia as a key source in your work simply demonstrates that you have failed to engage in the challenging, but rewarding, academic exercise of researching high-quality scholarly resources. 9 Reading hints and tips Is there a “trick” for working your way through the reading list. Fortunately there is.  scanning the documents and locating specific words or phrases that are of interest. Focus on headings and subheadings, the contents page itself and the index for specific words (Top tip: it is easy to search PDF documents for keywords).  when reading, be strategic. Some papers may be useful to support your arguments, other may not.  get some help on how to read research papers. Studywell (http://www.studywell.library.qut.edu.au/) has some excellent advice on how to read (fast) and digest research papers. Helpful advice on writing your research essay Your writing style needs to be clear and efficient (after all you only have 1250 words). Some key advice would be:  remember structure in writing – introduce, discuss and conclude.  use short sentences – long sentences lose the reader.  one argument/idea per paragraph. This assessment is a formal academic piece of writing. The words and language style you use will convey this. Language used should be appropriate. Things to avoid include informal language, shorthand or colloquialisms. A short check list of advice would include:  use “do not” instead “don’t”  use “cannot” instead of “can’t”  write in the third person – avoid using personal pronouns. For example: “Research shows that ….” rather than “I think that …”. Descriptions should be quantified and/or relative to a comparable benchmark. For example:  instead of saying “there was a massive increase in China’s economic growth” you would phrase it as “China’s economic growth, as measured by GDP, increased by X% over the period (include citation of where your evidence came from)”.  instead of saying “GDP in China was better than everyone else’s” you would phrase it “GDP in China increased by X%. In comparison it fell by X% in USA and X% in the UK (include citation of where your evidence came from).” Tables and figures in themselves do nothing to enhance an argument unless they are clear AND explained AND interpreted by you for the reader. When inserting a table or figure into your work it is good practice to give each a number (e.g. Figure 1, Table 1) and title it (the title should describe what the table or figure is presenting) and refer to the table or figure number explicitly in the text. Place the table or figure as near to the paragraph that you are going to discuss it in (either directly above or below). An example is given below in Figure 1. If you have hand drawn your tables and figures attach them to the end of your document. 10 Figure 1. How to present diagrams and tables In your reading, you will come across tables and figures that may be useful in explaining or supporting a point that you want to make in your own work. Try to avoid cutting and pasting from articles and the text book. Relevant tables and figures should be adapted to support your work and referenced. Figures (especially those relating to theory) can be redrawn in Paint or Word (using the draw tool). Similarly, tables of data can be created in Excel and imported into Word (or created in Word using the table tool). Further support for Assessment 2 Support for this assessment item includes:  Lecture 2/ tutorial 2  Lecture 4/ tutorial 4  Lecture 7/ tutorial 7  Consultations with tutors  Supporting documentation (including this document) Please note tutors will be prepared to discuss your approach but will not read drafts. In addition to the above, generic skills support and help can be sought from a range of sources:  4S workshops o See Blackboard and https://www.library.qut.edu.au/events/  Student Learning Advisors o http://www.student.qut.edu.au/about/faculties-institutes-anddivisions/faculties/business/study-support/student-learning-advisers  Study smart o http://studysmart.library.qut.edu.au/ Vessel ownership was also a significant factor affecting efficiency. In general, vessels belonging to larger companies were more efficient than those belonging to smaller companies, which in turn were more efficient than owner-operators. This may reflect the greater level of information sharing that can occur within a larger company fleet, but may also reflect fleet management skills, with the larger companies having better fleet managers. Alternatively, the larger companies may be able to attract and keep the better skippers and crew. Figure 1. Among-vessel distribution of technical efficiency scores Although the decline in boat numbers between 1995 and 2007 may have had a negative impact on technical efficiency, the removal of older vessels through buyback and consolidation, and replacement of some older vessels by newer vessels resulted in a net increase in average technical efficiency in the fishery. The mean technical efficiency in 2007 was 0.793, compared to a mean technical efficiency score of 0.736 over the period 1995-2000. Although the mean efficiency scores appear to differ only marginally, the distribution of scores shifted to the right (Figure 1), with a higher proportion of vessels having high technical efficiency scores (i.e. ≥ 0.8). Source Pascoe, S., Punt, A., Coglan, L. and Dichmont, C. (forthcoming 2012). Impacts of vessel capacity reduction programs on efficiency in fisheries: The case of Australia’s multispecies northern prawn fishery. Journal of Agriculture Economics. 0% 5% 10% 15% 20% 25% 30% 35% 40% <0.6 0.60-0.65 0.65-0.70 0.70-0.75 0.75-0.80 0.80-0.85 0.85-0.90 Technical efficiency Frequency 1995-2000 2007 11 Criterion Reference Assessment for Assessment Item 2: research essay Assessme nt task # GRADE 7 6 5 4 <4 Weight 100%  85% 84%  75% 74%  65% 65%  50% 49%  0% 1 Set the context with reference to appropriate data sources and policy. Data has been appropriately presented and explained. (KS 1.2) 15% A clear and complete account is given which is well-informed by supporting data and policy. Data are appropriately presented (e.g. in tables or graphs) and their relevance and meaning have been clearly and concisely explained. A complete outline is given which is informed by supporting data and policy. Data are appropriately presented (e.g. in tables or graphs) and their relevance and meaning have been explained. An outline is given which is informed by supporting data and policy. Data are presented appropriately (e.g. in tables, graphs etc) but their relevance and meaning are not always clear and/or they are causally referred to. The outline is given. The policy context is incomple
te. The relevant supporting data are incomplete. Data that are presented is relevant but presentation could be improved. Data are only occasionally referred to. Either there is NO outline AND/OR the policy and relevant supporting data are incorrect or omitted. Data are poorly presented. Data are not referred to. 2 Presented and described the appropriate economic theory, model and/or framework. (KS 1.1) 25% There is a clear, concise and accurate description of the relevant economic theories and/or models. There is a description of the relevant economic theories and/or models. The relevant economic theories and/or models are identified. There may be some minor errors. The relevant economic theories and/or models are incomplete There are a few errors. The relevant economic theories and/or models are incorrect or omitted. There is a large number of errors/inconsistencies. 3 Presented an analysis of the potential economic issues. (HO 2.1) 40% An excellent critical analysis of a range of economic issues which is underpinned by economic theory and/or appropriate supporting evidence An analysis of a range of economic issues under pinned by economic theory and/or appropriate supporting evidence An analysis of some of the economic issues with evidence of some reference to theory and/or appropriate supporting evidence. An overview of a limited set of potential economic issues Limited reference to theory and/or appropriate supporting evidence. There is a very limited OR no identification of any potential economic issues AND/OR there is very limited or no reference to theory AND/OR relevant supporting evidence 1,2,3 Used a range of relevant scholarly sources to support content and arguments. (PC 3.1) 10% Incorporated relevant recommended readings to support content and arguments AND a selection of additional relevant scholarly sources that substantially supports the critical content of the discussion. Incorporated relevant recommended readings to support arguments and discussion AND a limited range of relevant scholarly sources that supports the critical content of the discussion. Incorporated relevant recommended readings to support arguments and discussion. There are no additional references OR additional references are from non-scholarly sources. Limited evidence of incorporating recommended readings to support arguments and discussion. There are no additional references OR additional references are from nonscholarly sources. Very limited evidence of having read the recommended readings AND/OR any additional references use are irrelevant AND/ OR from non scholarly sources. 1,2,3 Presented an appropriately written academic document which consistently adhered to APA style conventions for references. (PC 3.1) 10% An excellent standard of academic writing is achieved. The writing style is clear, concise and objective. The structure of the essay is logical. All sources are consistently and accurately reference (both in-text citation and in the reference list) A good standard of academic writing is achieved. The writing style is clear, concise and objective. The structure of the essay is logical. There is a high level of accuracy in referencing (both intext citations and reference list) for all sources used. A competent standard of academic writing is achieved. The writing style is clear but sometimes lacks objectivity. The structure mostly follows a logical sequence. There are a few minor inaccuracies in the referencing of sources (both intext citations and reference list). The standard of academic writing could be improved. The writing style is reasonably clear but lacks objectivity. The structure could be improved. There are a number of inaccuracies in the referencing of sources (both in-text citations and reference list) The standard of academic writing is poor. The writing style is unclear and confusing. The structure presented is not logical. There may be evidence of plagiarism OR lack of acknowledgement of sources AND/OR referencing is largely inaccurate AND/OR inconsistent. 12 Your notes on assessment 2