This report by NZIER is the second stage of its Computable General Equilibrium (CGE) modelling of the economic impacts of meeting different 2050 emissions targets. CGE modelling estimates both macroeconomic impacts and microeconomic/industry impacts. For Stage 2, NZIER refined and extended its modelling, introducing four key improvements:
- the mitigation required at 2050 to meet net zero emissions has been recalculated
- the baseline was updated to match most recent projects
- innovation assumptions and forestry projections have changed.
NZIER has considered a different set of targets and also explored the sensitivity of some results to changes in forestry sequestration.