After readingMarriott: WI-FI as a service or revenue streamin Chapter 2 please answer the questions at the end of the case.
-1200 word minimum (not including title and reference pages).
-Write each questionfollowedby an in-depth discussion for each question.
Remember to cite your sources and to apply the terms and concepts we have been studying in the course in your analysis of the case.
Submit your assignment in Microsoft Word (.doc or .docx) file or as a Rich Text Format (.rtf) file. If your paper cannot be opened, you will not receive credit.
You must pass the Writing Intensive (WI) portion of this course with an average of 60 or above. This case is a WI component.
CARBON TAXES CARBON TAXES2 Comment by Tanya Prosise: Running HeadAll caps Carbon TaxesComment by Tanya Prosise: Times New Roman 12 FontDouble Spaced1” Margins all the way around Tanya Prosise Tarleton State University Comment by Tanya Prosise: Number Pages Although a carbon tax harms some firms and industries, it creates opportunities for others. Which industries are likely to benefit and which industries are likely to lose from a Carbon Tax?Comment by Tanya Prosise: Bold Questions Benefiting IndustriesComment by Tanya Prosise: Bold Headings There are many industries that would benefit should a carbon tax be implemented in the United States. Those include industries that provide alternative low-carbon sources of power such as solar, wind, and hydropower. The use of hydropower over burning coal cuts down on greenhouse gases tremendously (IHA, 2018, para 3). Miners in B.C. have utilized hydroelectric power in order to diffuse expensive tax resulting from using fossil fuels (Healing, 2016, para. 7). There is also plenty of opportunities in the technology sector. One such example is how technology has made strides in battery and storage technologies that have enabled electric vehicles to become more viable (Casewit, 2018). Advances in technology can expand the use of renewable energy, nuclear power and natural gas (Perry, 2012, para. 20). If a carbon tax were enforced, companies would find ways to lessen the tax burden by reducing emissions and this can be accomplished through technology. Comment by Tanya Prosise: Paraphrased In-text Citation Another industry that would potentially benefit would be mass transit such as the railway transport sector (Casewit, 2018). Rising costs of individual transportation could result in less automobiles on the road; therefore, increasing the demand for mass transit alternatives that produce less emissions. Losing Industries Dan Healing (2016) of Canada stated the carbon tax policy will negatively affect the Canadian auto manufacturing, fuel refining, mining, and agriculture industries. It will also affect many manufacturers and exporters from steel to high-technology hardware. Each industry’s emissions vary greatly, but each will be forced to increase prices to cover the tax. They are concerned about being able to remain competitive with others around the world that do not have to play by the same rules (para. 4-8).Comment by Tanya Prosise: Paraphrase. Another method. Sandwich the material between author (date) and page/para. #. Hard hit sectors in the U.S. economy from a carbon tax would be industries that were energy-intensive (Perry, 2012). Those industries include chemicals, car manufacturing, cement, aluminum, iron and steel, and oil refining. Perry (2012) claimed that if a tax was imposed, that these companies would relocate so they would not be at a disadvantage in the world marketplace. The costs would not only be in dollars, but also in lost jobs (para. 6-8). How will a carbon tax impact the overall demand for automobiles? Which segment of the automobile market will hurt and which will benefit from this tax? Why? Explain. Consumers demands will shift from automobiles that are powered by gasoline and diesel to substitutes that are more energy efficient and eco-friendly, partly due to increased awareness and partly because of pressures applied to auto manufacturers to become more socially responsible. The automobiles powered by fossil fuels will suffer; whereas, eco-friendly automobile segments will reap the benefits. According to the United Nations Climate Change (2018), the auto industry must respond quickly to technological changes and environmental regulations to prevent falling behind (para. 1). In addition to new regulations, a carbon tax would cause auto manufacturers to modify their products to cut down on the amount of tax they would have to pay. “Research suggests that over 30% of new car sales are projected to be zero emissions and plug-in hybrid by 2030” (UNCC, 2018, para. 3). They further claimed that electric vehicles could become more affordable than the traditional vehicles of today by year 2022 (para. 3).Comment by Tanya Prosise: Direct Quote. What will be the effect of imposing a carbon tax on the overall price of gasoline? How is the quantity demanded varies across the purchase of gasoline? Why? What impact will this tax on government revenues? In which cases, it may be higher and in some cases, it may be neutral? Why? The price of gasoline will increase as a result of imposing a carbon tax. Huber (2018) stated that after the carbon tax was implemented in British Columbia, fuel consumption dropped by 15.1% (para. 6). The assumption is the tax would have the same effect in the United States as in Canada. As the prices rise, the quantity demanded will fall. Higher prices on fuel will cause consumers to find substitute forms of transportation that are more cost efficient. The money collected for the carbon tax are considered to be “revenue neutral” in British Columbia (Huber, 2018). Any money that was brought in went to benefit taxpayers in the form of tax cuts making them neutral (para. 7). Had the government actually collected and keep the taxes for other uses, then it would have been considered revenue. Besides the automobile industry, which other industries are likely to be impacted by the Carbon tax? In addition to the industries affected by the carbon tax listed in question one, utilities in will also be significantly impacted in Canada according to Madeleine Cuff with GreenBiz (2018). It is claimed that the electric utility sector is the most vulnerable with, “profits at risk potentially running to 90 percent of margins by 2030 and 150 percent by 2050” (Cuff, 2018, para. 12). The chemicals industry will experience serious impacts with profits at risk of 30 percent by 2030, and 60 percent by 2050 (para. 12). The magnitude of the effect comes down to the carbon intensity of the business’ as well as where their operations are based. Cuff (2018) stated that, “because utilities tend to have the highest carbon footprint per unit of revenue and assets concentrated in few countries, they are most exposed” (para. 15). Bottom line, firms within sectors that have already invested in clean energy will have less exposure than those who still rely on coal power. Additionally, firms that have more control over their efficiency and emissions throughout their supply chains will be better equipped to weather the risk associated with increasing carbon taxes (Cuff, 2018, para. 15-16). References Casewit, U. (2018, August 24). A sector at a crossroads: The emerging role of carbon pricing in transport. Carbon Pricing Leadership Coalition. https://www.carbonpricingleadership.org/blogs/2018/8/24/a-sector-at-a-crossroads-the-emerging-role-of-carbon-pricing-in-transportation Comment by Tanya Prosise: Indentation - Hanging Cuff, M. (2018, January 26). Utilities may suffer ‘significant losses’ from carbon taxes. GreenBiz. https://www.greenbiz.com/article/utilities-may-suffer-significant-losses-carbon-taxes Healing, D. (2016, October 4). How Trudeau’s carbon price plan will affect five Canadian industries. Star Business Journal. https://www.thestar.com/business/2016/10/04/how-trudeaus-carbon-price-plan-will-affect-five-canadian-industries.html Huber, P. (2018). The carbon tax: An analysis. Industry West Magazine. https://industrywestmagazine.com/features/the-carbon-tax-an-analysis/ Perry, M.J. (2012, October 16). Carbon tax would kill major industries, hurt U.S. consumers. Investor’s Business Daily. https://www.investors.com/politics/commentary/carbon-tax-would-kill-off-growth-in-american-economy/ United Nations (2018, January 18). Global car industry must shift to low carbon to survive – CDP. United Nations Framework Convention on Climate Change. https://unfccc.int/news/global-car-industry-must-shift-to-low-carbon-to-survive-cdp United Nations Framework Convention on Climate Change