Recently, the carbon tax issue has been gaining increasing attention in Australia due to its
             function of reducing greenhouse gas as well as its extensive economic impacts on a range
             of industries, such as tourism and hospitality. The conceptual meaning of the carbon tax is "a
             levy applied to various operations that generate carbon dioxide" (Covey, 2009, p.329). Such a
             tax is introduced to achieve a desired national emission target (Covey, 2009).
             The introduction of the carbon tax in Australia is derived from the serious environmental issue of climate change. According to The Economist (2011), Australia's emissions measured on a per capita basis are the largest of any developed country, mostly because Australia produces approximately 80% of its electricity from coal which is one of the sources of energy directly measured by greenhouse gas emissions. Therefore, considering the adverse consequence of climate change, an effective long-term solution is required to achieve fundamental shifts in consumer and business behaviors (Hoque et al., 2010).
             The increasing concerns about the carbon tax can also be attributed to its profound impacts on the market in which individuals and businesses are involved. Clarke (2011) claimed that the carbon tax will have significant effects on markets for goods involving carbon intensive inputs as well as on the actual markets for these inputs and for their substitutes and complements. Also, it cannot be neglected that the introduction of the carbon tax as a climate change policy is a reflection of the Australian Government's objective to cut greenhouse gas emissions. Specifically, the Australian Government has raised its progressive target to cut its carbon emissions by 80% of their 2000 levels by 2050 (The Economist, 2011).
             This report investigates the above mentioned introduction of the carbon tax in Australia as closely interconnected to with the dominant environment...