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Emissions trading in New Zealand: points of obligation
Abstract
In any industry, there is a vertical chain of production and consumption, with several ‘layers’ from initial production to final consumption. For example, in the electricity sector fuel is imported and sold to generators; generators use fuel to create electricity which is sold to retailers; retailers sell the electricity to businesses who use it to create products that they sell, and to households who use the electricity directly. The ‘points of obligation’ in an emissions trading system are the entities in each industry that are required to report a defined set of information. This information is used to model the GHG emissions relating to each chain of production and consumption. The points of obligation must then surrender sufficient emission units to match those GHG emissions.
Download summary of this paper - Summary 3: Choosing a ‘Point of Obligation’
Citation
Small, John and Suzi Kerr. 2007. "Emissions trading in New Zealand: points of obligation," paper prepared for New Zealand Climate Change Policy Dialogue, 24 September.
Motu code: MEL0402
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