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Table 3: Summary of Effects (1 is least positive and 3 is most positive)

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Price based measures

 

Emissions trading

CO2 charge

Renewable obligations

Incentives

Direct Regulatory

Cap and Trade

Baseline and Credit

Trading of cross sectoral offsets

Trustpower proposal

CO2 charge

Capacity obligation

Generation obligation

Capacity subsidies

Feed-in tariff

Projects

Using Elect city ACT city Act

Using RMA

Environmental effectiveness

3

2

2

2

2

2

2

2

2

2

 

 

Cost effectiveness

3

3

2

2

3

2

2

2

2

2

 

 

Ease of implementation

1

 

 

2

2

2

3

3

2

2

1

1

Compatibility with a long-term emissions price signal

3

2

2

2

2

2

2

1

1

2

1

1

Impact on energy prices

Price falls

[Thermal entrants may lead to a higher electricity price.]

[Prices may rise or fall depending on the nature of the regulation.]

Price increases

Potential coverage

Electricity

Industry (heat)

Industry process emissions

More renewables entry

Less fossil fuels entry

Who bears the cost

Crown/taxpayer

Emitter/consumer

*Thermal entrants may lead to a higher electricity price.

*Prices may rise or fall depending on the nature of the regulation.

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