Motu Economic and Public Policy Research

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Emissions Trading

Smokestacks pumping white clouds into blue skyMotu’s current work on emissions trading ranges from early evaluation of the implementation of the ETS in the forestry sector to assessment of the effect of climate change on electricity markets and computable general equilibrium modelling. A major project involves investigating the most effective ways to apply the ETS in the agricultural sector, as well as providing empirical evidence on climate change and facilitating the rapid uptake of climate change mitigation policies. As part of this project Motu, in collaboration with EcoClimate, has started a dialogue group on medium-term agricultural emissions mitigation.

Motu’s emissions trading work is funded by two major grants: the “Integrated Economics of Climate Change” project, funded by MSI, and the “Coordination and Co-operation for Effective Climate Policy Design and Implementation” project, funded by MAF. Both of these projects use Motu’s Land Use in Rural New Zealand model to assess the impacts of the ETS and the projected impacts of other emissions trading and mitigation policies.

Motu has also been involved in international emissions trading work, and in the construction of the New Zealand ETS.

Building the New Zealand ETS

Sheep clustered around a water troughMotu has been heavily involved in the design and refinement of the New Zealand Emissions Trading Scheme. We have run a dialogue group, participated in the Climate Change Leadership Forum and a technical advisory group on agricultural emissions, and produced a number of reports.

International Emissions Trading

International Emissions TradingOur international climate change work especially focuses on the design of international emissions trading, compliance regimes and the allocation of liability for non-compliance.

Carbon Sequestration on Maori Land

Carbon Sequestration on Maori LandThis project addressed the challenge of how to effectively and fairly provide incentives to enhance the regeneration of native forest in order to increase carbon storage and hence mitigate climate change. It focuses particularly on the challenges of engaging with landowners on multiply owned Maori land.