View all publications

Economic modelling of New Zealand climate change policy

Publication date:  August 2009

This report examines the macroeconomic effects of policy options for climate change mitigation in New Zealand. We examine the short run (to 2012) and long run (to 2025) impacts of a number of possible scenarios. These scenarios include an Emissions Trading Scheme (ETS) as previously proposed and various carbon tax alternatives. We consider the effects on economic welfare measures of issues such as different domestic carbon price levels, whether the rest of the world prices carbon; the free allocation of emissions permits to certain trade-exposed, emissions-intensive sectors; and technological change.