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New Zealand Emissions Trading
Motu has been working on the design of a domestic emissions trading system for New Zealand. This includes running a dialogue group, participating in the Climate Change Leadership Forum and writing a number of papers
Project Summary
In September 2007, the New Zealand government released its proposal for an all sources, all gases emissions trading system for New Zealand. Emissions Trading Systems limit the amount of Greenhouse Gases that can be released into the atmosphere. It is important that New Zealand develop solid, coordinated policy on climate change because we are committed to the Kyoto Protocol and face high costs if we don’t meet our obligations, costs that are likely to rise in the future.
Motu has been working on the design of a domestic emissions trading system for New Zealand. This includes running a dialogue group, participating in the Climate Change Leadership Forum and writing a number of papers.
Introduction to Emissions Trading
Motu has generated a series of short papers designed to introduce emissions trading to non-economists. These papers are around five pages long and are accompanied by single-page summaries. More…
Climate Change Policy Dialogue
As part of its “Integrated Economics of Climate Change” research programme, Motu started a Climate Change Policy Dialogue Group (CCPD) in June 2007 to discuss the design of an emissions trading system. The immediate purpose of the CCPD is to collaboratively develop and review an emissions trading system design. A further purpose is to develop the capacity to work around complex climate change issues from a New Zealand perspective. Read more on the EcoClimate website…
Agricultural Emissions Trading
New Zealand’s emissions notably differ from those of many other countries in that agricultural emissions play a significant part. The NZ government thus planned to include methane and nitrous oxide, both greenhouse gases from pastoral agriculture, horticulture, and arable production.
See the following links for detailed information:
http://www.maf.govt.nz/climatechange/reports/atag-final-report-april-09.pdf (PDF 1.01MB)
http://www.maf.govt.nz/climatechange/reports/#agriculture
http://www.maf.govt.nz/climatechange/agriculture/
Motu publications on agricultural emissions trading:
Kerr, Suzi and Wei Zhang. 2009. “Allocation of New Zealand Units within Agriculture in the New Zealand Emissions Trading System,” Motu Working Paper 09-16.
Environmental Trading Game
Motu’s environmental trading game is freely available for download. Participants act as farmers in a nutrient (or emissions) trading system, though the game can be adapted for any other environmental problem. It is suitable for use with any group interested in better understanding these issues, both in an educational or professional setting (and comes with non-technical instructions).
Find out more and download the game here.
Useful links
Our collaborators bring technical, sectoral and social perspectives to the group effort. We have complied a list of useful articles and web links relating to climate change and climate change regulation in New Zealand.
- Glossary of climate change terms from the New Zealand Business Council for Sustainable Development
- New Zealand’s Government Climate Change Solutions
- New Zealand Government climate change work programme Sept 2008
- New Zealand Treasury’s Climate Change work
- The ESSAM General Equilibrium Model by Infometrics Consulting
- An Economic View of the Environment, a blog by Dr Robert N Stavins, Harvard University
- Kerr, Suzi. 2010. ‘Emissions trading for forestry and agriculture: policy design and integrated simulations in New Zealand’ UC Berkeley Agricultural and Resource Economics seminar, Feb 18, 2010.
- Kerr, Suzi. 2009. "How can agriculture be included in an emissions trading scheme? Some thoughts from New Zealand," Australian Farm Institute Conference, Maroochydore, May.
- Kerr, Suzi. 2009. "Climate change policy: stepping back and moving forward," Motu Economic and Public Policy Seminar, May.
- Kerr, Suzi. 2008. "Temporal emission trading markets," NBER Summer Institute Egg-timer, July.
- Kerr, Suzi. 2008. "Emissions trading in New Zealand," EPMU Biennial Conference, Auckland, July; and Canterbury Employers Chamber of Commerce, Christchurch, July.
- Kerr, Suzi. 2007. "Key issues in the design of an emissions trading system for New Zealand," Motu Public Policy Seminar, September.
- Kerr, Suzi and Ralph Chapman. 2007. 'Transiton into and evolution of a New Zealand emissions trading system," paper presented at Climate Change Policy Dialogue, Wellington, 31 July.
- Kerr, Suzi. 2009. "Environmental markets: how can they work for water quality and climate change?" Auckland Public Policy Seminar, April.
- Kerr, Suzi. 2008. "The likely impacts of climate change policy," presented at The Social Impacts of Climate Change Policy workshop, 28 February.
- Regina Betz, Stefan Seifert, Peter Cramton and Suzi Kerr. 2010. "Auctioning greenhouse gas emissions permits in Australia," Australian Journal of Agricultural and Resource Economics, forthcoming.
- Kerr, Suzi and Wei Zhang. 2009. "Allocation of New Zealand Units within Agriculture in the New Zealand Emissions Trading System," Motu Working Paper 09-16.
- Kerr, Suzi. 2009. "Comments to select committee," invited independent specialist advice on the Climate Change Response (Moderated Emissions Trading) Amendment Bill.
- Kerr, Suzi. 2009. "New Zealand ETS: Submission to the select committee," Speaking notes, Monday 11 May, Wellington.
- Kerr, Suzi. 2009. "Intensity-based regulation versus output-based free allocation: a clarification of comments to the Select Committee," 17 May.
- Kerr, Suzi and Marianna Kennedy. 2009. 'Greenhouse Gases and Water Pollutants: Interactions Between Concurrent New Zealand Trading Systems,' Motu Note #2.
- Kerr, Suzi and Andrew Coleman. 2008. "Economic regrets," Motu manuscript presented to Cluster B of the Climate Change Leadership Forum, 22 May.
- Kerr, Suzi and Andrew Sweet. 2008. "Inclusion of agriculture in a domestic emissions trading system: New Zealand's experience to date," Farm Policy Journal, 5:4, 43-53, November.
- Kerr, Suzi and Andrew Sweet. 2008. "Inclusion of agriculture and forestry in a domestic emissions trading system: New Zealand's experience to date," Motu Working Paper 08-04.
- Kerr, Suzi and Ralph Chapman. 2007. "Emissions trading in New Zealand: transition and evolution," paper prepared for New Zealand Climate Change Policy Dialogue, 25 September.
- 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.
- Kerr, Suzi. 2007. "Emissions Trading in New Zealand: managing economic risk," paper prepared for New Zealand Climate Change Policy Dialogue, 25 September.
- Greenhalgh, Suzie; Jim Sinner and Suzi Kerr. 2007. "Emissions Trading in New Zealand: options for addressing trade exposure and emissions leakage," paper prepared for New Zealand Climate Change Policy Dialogue, 21 September.
- Kerr, Suzi and Murray Ward. 2007. "Emissions Trading in New Zealand: Introduction and Context," paper prepared for New Zealand Climate Change Policy Dialogue, 20 September.
- Kerr, Suzi. 2007. "Review of proposed New Zealand Emissions Trading Scheme," report commissioned by the Emissions Trading Group.
- Hendy, Joanna and Suzi Kerr. 2007. "Impacts on the pastoral sector from emissions charges on agriculture gases: analysis from the model Land Use in Rural New Zealand version 1: climate," Motu manuscript.
- Kerr, Suzi; Isabelle Sin and Joanna Hendy. 2005. "Taxes vs permits: Options for price-based climate change regulation," New Zealand Treasury Working Paper 05/02.
- Sin, Isabelle; Emma Brunton, Joanna Hendy and Suzi Kerr. 2005. "The Likely Regional Impacts of an Agricultural Emissions Policy in New Zealand: Preliminary analysis," Motu Working Paper 05-08.
- Kerr, Suzi and Catherine Leining. 2004. "Joint Implementation in Climate Change Policy," in The International Yearbook of Environmental and Resource Economics 2003/04, Tom Tietenberg and Henk Folmer, Eds.
- Kerr, Suzi; Emma Brunton and Ralph Chapman. 2004. "Policy To Encourage Carbon Sequestration in Plantation Forests," Motu Working Paper 04-05.
- Kerr, Suzi and Catherine Leining. 2003. "Joint Implementation in Climate Change Policy," Motu Working Paper 03-04.
- Kerr, Suzi. 2003. "Indigenous Forests and Forest Sink Policy in New Zealand," Motu Working Paper 03-15.
- Kerr, Suzi. 2003. "Efficient Contracts For Carbon Credits From Reforestation Projects," Motu Working Paper 03-12.
- Carswell, Fiona; Garth Harmsworth, Suzi Kerr, Rau Kirikiri and Ian Turney. 2002. "A Framework for Engagement of Maori Landowners in 'Carbon Farming' using Indigenous Forest Regeneration," Motu Manuscript and Landcare Research.
- Cramton, Peter and Suzi Kerr. 2002. "Tradeable Carbon Permit Auctions: How And Why To Auction Not Grandfather," Energy Policy 30.
- Kerr, Suzi and Joanna Hendy. 2002. "Regional Employment Impacts of the Kyoto Protocol," paper prepared for the New Zealand Ministry for the Environment, Wellington.
- Kerr, Suzi; Alexander Pfaff and Arturo Sanchez. 2002. "The Dynamics of Deforestation: Evidence from Costa Rica".
- Kerr, Suzi; Brian White, Brian Cox and John Rutherford. 2002. "Renewable Energy and the Efficient Implementation of New Zealand's Current and Potential Future Greenhouse Gas Commitments," prepared for the New Zealand Ministry for the Environment, Wellington.
- Fischer, Carolyn; Suzi Kerr and Michael Toman. 2001. "Using Emissions Trading to Regulate National Greenhouse Gas Emissions" in Climate Change Economics and Policy: An RFF Anthology, Michael A. Toman, Ed. Washington DC: Resources for the Future.
- Kerr, Suzi. 2001. "Emissions Trading, Project-Based Trading and Joint Implementation," paper written for the New Zealand Ministry of Economic Development, Wellington.
- Kerr, Suzi and Elizabeth DeSombre. 2001. "Trade and the Environment: the Risks and Opportunities for New Zealand Associated With the Relationship Between the WTO and Multilateral Environmental Agreements," report produced for the New Zealand Ministry for the Environment, Wellington.
- Kerr, Suzi Ed. 2000. Global Emissions Trading: Key Issues for Industrialized Countries, United Kingdom: Edward Elgar Publishing.
- Kerr, Suzi. 1999. "Allocation of Greenhouse Gas Reduction Responsibilities Among and Within the Countries of the European Union".
- Cramton, Peter and Suzi Kerr. 1998. "A Tax-Cut Auction for the Environment: How and why to auction CO2 emissions permits," Resources for the Future Discussion Paper 98-34.
- Fischer, Carolyn; Suzi Kerr and Michael Toman. 1998. "Using Emissions Trading to Regulate U.S. Greenhouse Gas Emissions: An Overview of Policy Design and Implementation Issues," Resources for the Future Discussion Paper 98-40 (July).
- Kerr, Suzi. 1998. "Enforcing Compliance: The Allocation of Liability in Internation GHG Emissions Trading and the Clean Development Mechanism," Resources for the Future Climate Issue Brief no. 15.
- Kerr, Suzi. 1998. "Alternative Allocation Methods for Greenhouse Permits: Pros and Cons," Unpublished Manuscript.
- Kerr, Suzi. 2001. "Ecological Tax Reform," Report for the New Zealand Ministry for the Environment, Wellington.