Coursework assignment of 1,000 words (maximum). Do not use footnotes or appendices. The title and list of references are not included in the word count. Include a word count in your submission.

Choose ONE question from the following two:

Either

QUESTION 1

Suppose the UK government is considering reintroducing theEnergy Bills Support Schemenext winter. The previous scheme, which was established to help households with their energy bills over winter 2022/23, paid £400 directly to energy suppliers which was then applied as credit to households’ bills. All households with a domestic electricity connection were eligible. For the new scheme the government is  considering  sending  money  directly  to  households  (instead  of to  the  energy  suppliers),  which households can then use to contribute towards their energy bills themselves.

You are an Economist advising a government minister. Write a policy briefing comparing the welfare implications of the two different ways of paying the Energy Bill Support Scheme money. In your answer you should also discuss any distributional issues and whether you think the scheme could be improved.

Or

QUESTION 2

You are providing advice to a national government that is considering implementing a new tax on sugary snacks and drinks. An official from the Ministry for Health points to the costs imposed by    obesity on the health service and argues that taxes work well in reducing sugar consumption. An   official from the Competition Authority is concerned about the potential tax. They inform you that there is evidence of market power in this sector and that these products are typically sold at prices above competitive levels.

Write a policy briefing on the case for implementing a sugar tax, including recommendations on the  design. Would the information from the Competition Authority influence your decision on the level of tax to set, and if so, how?

Additional reading for question 1

Information/guidance on the previous scheme:

https://www.gov.uk/guidance/getting-the-energy-bills-support-scheme-discount

You may find to helpful to re-read Varian Chapter 2.6 (on how Taxes, Subsidies, and Rationing impact

Budget Constraints)

https://bris.on.worldcat.org/oclc/1199326668

Additional reading for question 2

The question is not set in the UK context, but the following articles may be useful.

Griffith et al. (2016) ‘Using taxation to reduce sugar consumption’ . IFS Briefing Note BN180

https://ifs.org.uk/sites/default/files/output_url_files/BN180.pdf

Griffith et al. (2020) “What’s on the Menu? Policies to Reduce Young People’s Sugar Consumption’ Fiscal Studies, 41(1), 165-197.https://onlinelibrary.wiley.com/doi/10.1111/1475-5890.12194

Summary of study published in the British Medical Journal on the UK soft drinks levy.

https://www.bmj.com/company/newsroom/consumption-of-sugar-from-soft-drinks-falls-within-a- year-of-uk-sugar-tax/

Assessment criteria

The  assessment  will  be  marked  using  the  University  marking  criteria  (listed  at  the  end  of  this document). In this assessment, we will focus on the following elements, (not equally weighted):

•    Addresses the question :

The extent to which the answer directly addresses the question being asked.

•    Technical knowledge:

Does the answer demonstrate good understanding of the relevant economic concepts and      empirical evidence? Is there evidence of understanding of the implications of relevant models and their application to specific contexts?

•     Critical evaluation:

The answer displays critical evaluation. Different arguments are weighed up and traded off using insights from theory/ evidence.

•     Organisation and presentation:

Is the material clearly and logically presented? There is a logical structure to the answer and the paragraphs flow into each other. There are very few grammar and spelling mistakes. Any charts are clear and accurately labelled.