In August 2001, the New Zealand Ministry of Agriculture and Forestry commissioned ABARE to undertake a second round of analysis of the potential economic impacts on New Zealand of implementing the Kyoto Protocol. This paper provides briefing for the New Zealand government on that analysis. The analysis is based on policy simulations specified by the client, and the results presented here do not reflect the outcomes of the negotiations at the resumed sixth Conference of the Parties in Bonn in July 2001. Results of ABARE’s most recent analysis, including the Bonn outcome, are contained in ABARE conference paper 2001.28, ‘The Kyoto Protocol: economic impacts under the terms of the Bonn agreement’ (Jakeman et al. 2001), which is available on the ABARE website.