The New Zealand Emissions Trading Scheme: A step in the right direction?

Abstract

This paper examines the development, features, merits and likely impacts of the New Zealand Emissions Trading Scheme (as implemented by amendments the Climate Change Response Act 2002). First, the paper explores the history and debate surrounding selection of policy instruments to reduce New Zealand’s greenhouse gas emissions with a particular focus on the New Zealand emissions trading scheme. Second, the paper describes the consultation processes that have been used in the development of the climate change policy in New Zealand. Third, the paper examines the sectoral requirements and effects of participation in the scheme and looks at the modelling of economic and environmental impacts that has been carried out by various organisations. Finally, some brief comparisons are made with schemes in other jurisdictions.