High School International Economics Essay Competition (HIEEC) 2024 Guidelines

Here is a step-by-step guide to help you begin, explore, and develop a high-quality essay on one of the four thought-provoking topics provided for the 2024-2025 cycle. The goal is to understand key economic concepts and develop a structured argument. Below, you'll find useful introductory readings, important concepts, and further resources to help you build a compelling argument for each topic.

This is not all that you need to read for the topics that you choose. Please use resources like Google Scholar and JSTOR (if your school gives you access) to find more articles and research to develop your arguments further. The references given are to give you a foundation or a starting point for your essays, they aren’t exhaustive or comprehensive.

Topics and Guidance

1. Environment: Carbon Taxes vs. Renewable Energy Subsidies

Prompt: Carbon taxes have been implemented in many countries, including in Europe and the United States, and are considered to play a significant role in regulating greenhouse gas emissions. However, there are criticisms regarding this approach, such as the argument that it is not effective because enterprises may keep polluting as long as they pay the cost. Additionally, the competitive advantage of imported products from countries without carbon taxes raises questions about its effectiveness. What unique effects can be anticipated from carbon taxes compared to subsidies for renewable energy? To address the concerns currently raised about carbon taxation, what potential alternatives could be considered?

Introductory Readings

• The Effectiveness of Carbon Taxes in Europe - by The Economist. This article gives an overview of how carbon taxes work and their impact in European countries.

• Carbon Tax vs. Subsidies: A Cost-Benefit Analysis - from Brookings Institution. A detailed look at the advantages and disadvantages of carbon taxes and renewable energy subsidies.

Further Reading

• Why Carbon Taxes Might Fail and What We Could Do Instead- The Financial Times.

• https://blogs.worldbank.org/en/energy/what-carbon-tax-can-do-and-why-it-cannot-do-it-all

• https://www.sciencedirect.com/science/article/pii/S014098832400118X

• https://wri-india.org/blog/corporates-cost-carbon-and-internalising-externalities - by World Resources Institute. This resource explains the theoretical background of using market mechanisms, such as carbon taxes, to regulate emissions.

How to Prepare

• Understand Key Concepts: Familiarize yourself with economic terms such as carbon taxes, subsidies, externalities, market failures, Pigovian taxes, and opportunity costs.

• Explore the Debate: Focus on understanding criticisms of carbon taxes, including impacts on competitiveness and fairness. Review alternative approaches like cap-and-trade systems or direct regulation.

Summary & Breakdown

• Define carbon taxes and renewable energy subsidies and compare their economic effects. Discuss practical and theoretical effectiveness, and propose alternative or combined policy solutions.

2. Inequality: Income Tax vs. Consumption Tax

Prompt: Consider a country where income taxes are used to address socioeconomic inequality by taxing a portion of citizens' earnings, typically in a way that is proportional to income. Now, imagine that this government is debating a policy shift that would eliminate income taxes for all employed persons, replacing them with a new consumption tax on goods and services, proportional to the value of each item purchased. Analyze the potential short-term and long-term economic and social effects of this policy shift within this country, as well as possible impacts on its relationships with other nations. Would you recommend this approach as a viable alternative to income taxes? Additionally, consider how at least two different groups (e.g., high-income earners, retirees, unemployed persons) might view this policy change. Would they likely support or oppose it, and why?

Introductory Readings

• Investopedia Article on Consumption Taxes

• The Choice Between Income and Consumption Taxes: A Primer - National Bureau of Economic Research

Further Reading

• IMF Book on Inequality and Fiscal Policy

• https://www.sciencedirect.com/science/article/abs/pii/S0014292112000815

How to Prepare

• Understand Key Economic Concepts: Grasp progressive and regressive taxation, income distribution, socioeconomic inequality, elasticity of demand, and marginal propensity to consume.

• Consider Different Perspectives: Evaluate how high-income earners, retirees, and unemployed individuals would be impacted.

Summary & Breakdown

• Assess the short-term and long-term effects of replacing income taxes with consumption taxes, including implications for different stakeholders.

3. Workforce & Education: Adapting to Automation

Prompt: As automation and technological advancements continue to reshape industries, the skill sets required in the workforce are rapidly changing. How should education systems adapt to prepare students for a future dominated by automation and artificial intelligence? Evaluate the potential economic impact of reorienting education around STEM fields versus soft skills and critical thinking. What changes can be made at both the policy and institutional levels to ensure a workforce that is resilient and capable of thriving in an automated world?

Introductory Readings

• McKinsey Global Institute articles: https://www.mckinsey.com/featured-insights/themes/how-automation-is-shaping-the-future-of-work

• Harvard Business Review Articles: https://hbr.org/2019/09/are-you-developing-skills-that-wont-be-automated and https://hbr.org/2023/09/reskilling-in-the-age-of-ai. Discusses the importance of various skill types.

• https://www.iesalc.unesco.org/en/2023/08/11/the-future-of-higher-education-skills-for-the-world-of-tomorrow/

Further Reading

• https://www.weforum.org/stories/2024/04/future-learning-ai-revolutionizing-education-4-0/

• Policy Responses to Technological Change - by OECD. Explains how education policy can adapt to technological changes.

• https://academic.oup.com/ser/article-abstract/21/1/593/6551640

How to Prepare

• Core Concepts: Familiarize yourself with automation, AI, labor market dynamics, skills gap, STEM skills, and soft skills (such as critical thinking and emotional intelligence).

• Policy Perspectives: Focus on government policy and institutional reforms like curriculum updates to prepare for automation.

Summary & Breakdown

• Analyze how education can evolve to meet future needs, weighing the benefits of STEM versus soft skills, and propose specific policy and institutional changes.

4. Crypto/Finance: The Rise of Digital Currencies

Prompt: With the rise of cryptocurrencies and the potential introduction of central bank digital currencies (CBDCs), the role of traditional central banks may undergo significant shifts. How might the widespread adoption of digital currencies affect monetary policy, financial stability, and global capital flows? Should central banks regulate or embrace these innovations? Discuss the potential benefits and risks of digital currencies for consumers, businesses, and governments, and analyze how monetary systems could evolve in response.

Introductory Readings

• What Are Central Bank Digital Currencies (CBDCs)? - by Investopedia. A basic introduction to CBDCs.

• Cryptocurrency and Central Banking - by Bank for International Settlements. Insight into how cryptocurrencies may impact central banks.

• Digital Currencies and Financial Stability - by IMF. Discusses potential impacts on financial stability.

Further Reading

• https://www.amazon.in/Future-Money-Revolution-Transforming-Currencies/dp/0674272226 - Book that effectively summarises the topic

• European Central Bank Research on a Digital Euro.

How to Prepare

• Essential Economic Concepts: Understand monetary policy, financial stability, capital flows, decentralization, and the differences between cryptocurrencies and CBDCs.

• Explore Different Viewpoints: Evaluate benefits and risks for consumers, businesses, and governments, and analyze the role of central banks in digital currencies.

Summary & Breakdown

• Discuss the effects of digital currencies on monetary policy, financial stability, and capital flows, and propose a balanced central bank approach.

General Tips for Writing Your Essay

• Use Evidence and Examples: Support your arguments with data, examples, or case studies.

• Show Depth of Understanding: Analyze economic and social implications, focusing on cause and effect, trade-offs, and stakeholder perspectives.

• Structure Your Essay: Ensure a clear structure: an introduction, a body with well-developed arguments, and a conclusion.

Referencing Guides:

Chicago Style

I would recommend following the author-date system: Author-Date Style (chicagomanualofstyle.org)

Sample paper: CMOS Author Date Sample Paper - Purdue OWL® - Purdue University

APA Style

Basic Guide: How to Cite Sources in APA Citation Format | Mendeley

Examples: Reference examples (apa.org)

Good luck with your essays! Remember, the key is to present a compelling, well-reasoned argument that demonstrates critical thinking and a nuanced understanding of economic issues.