Micro and Macro Aspects of Carbon Trading in Vietnam | Synoptic Paper 3 | A Level Economics

Vietnam is introducing a carbon trading scheme as part of a move to a low carbon development model. This video looks at some of the possible micro and macro aspects.

#vietnam #carbontrading #economicdevelopment

VIDEO TIMESTAMPS
00:01 - Introduction to the topic of micro and macro impacts of carbon trading in Vietnam
00:37 - Vietnam's fast growth and its contribution to greenhouse gas emissions and air pollution
01:14 - Introduction of Vietnam's carbon emissions trading scheme and its goals for sustainable development and low carbon economy
01:47 - The potential impact of a carbon border tax in the European Union and its implications for Vietnam's exports
02:21 - Discussion on the micro and macro effects of carbon trading, introduction of carbon trading diagram and AD-AS analysis
02:58 - Micro aspects of carbon trading, including impacts on high and low carbon emitting firms, households, and externalities
03:58 - The focus on producers and the promotion of economic efficiency and sustainable socially optimal output
04:29 - Macro aspects of carbon trading, including the impact on investment, both domestic and foreign, and its potential effect on aggregate supply and job creation
05:42 - Discussion on trade balances, competitiveness, and inflation as potential macro effects
06:46 - Consideration of the most significant micro and macro effects and the uncertainty surrounding the effectiveness of carbon trading
07:14 - The potential impact on coal mining companies and the importance of their ability to fund investment or diversify into renewable energy
07:34 - The likelihood of increasing carbon permit prices in Vietnam and its dependence on government policies and the relative price of carbon permits compared to other countries
08:06 - Conclusion and encouragement to like the video

VIDEO SUMMARY
This video focuses on the micro and macro impacts of carbon trading, specifically in the context of Vietnam. Vietnam, a fast-growing country with a population nearing 100 million, is facing significant challenges due to the increasing demand for energy and subsequent greenhouse gas emissions. The country has experienced a sharp increase in air pollution, ranking second highest in Southeast Asia in 2019. To combat these issues and achieve sustainable development, Vietnam is introducing a carbon emissions trading scheme. The video highlights the potential benefits of carbon pricing, including the transition to a low carbon development model and protection of exports to regions such as the European Union. The micro impacts of carbon trading are explored, considering the effects on firms, households, and market externalities. Additionally, the macro effects are discussed, focusing on investment, unemployment, trade balances, competitiveness, and inflation. The video concludes by acknowledging the uncertainty surrounding the effectiveness of carbon trading and emphasizing the importance of considering the significant effects at both the micro and macro levels.