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Emission intensity in New Zealand manufacturing and the short-run impacts of emissions pricing

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  • Bartleet, Matthew
  • Iyer, Kris
  • Numan-Parsons, Elisabeth

Abstract

This paper reports the greenhouse gas (GHG) emission intensity of the New Zealand (NZ) manufacturing sector at a combination of industry group and class levels (sub-sectors). The short-run impacts of a price on emissions are investigated with a focus on exporting activities. Sub-sectors that could be materially impacted by an expected range of emissions prices accounted for slightly over 9% of national gross domestic product. It is found that there is much variability of emission intensity within manufacturing and even within sub-sectors. An assessment of trade intensities further indicates that several emissions-intensive activities are also export-intensive. These activities are at most risk of losing competitiveness in the short-run if they are subjected to a price on GHG emissions that their competitors in other countries are not. Emissions reduction policies must take account of trade competitiveness imperatives if NZ is to meet its international GHG emissions target while maintaining manufacturing sector competitiveness.

Suggested Citation

  • Bartleet, Matthew & Iyer, Kris & Numan-Parsons, Elisabeth, 2010. "Emission intensity in New Zealand manufacturing and the short-run impacts of emissions pricing," Energy Policy, Elsevier, vol. 38(12), pages 7756-7763, December.
    • Handle: RePEc:eee:enepol:v:38:y:2010:i:12:p:7756-7763
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    References listed on IDEAS

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    1. Fabling, Richard & Grimes, Arthur & Sanderson , Lynda & Stevens, Philip, 2008. "Some Rise by Sin, and Some by Virtue Fall: Firm Dynamics, Market Structure and Performance," Occasional Papers 08/1, Ministry of Economic Development, New Zealand.
    2. Kris Iyer, 2010. "The Determinants of Firm-Level Export Intensity in New Zealand Agriculture and Forestry ," Economic Analysis and Policy, Elsevier, vol. 40(1), pages 90-101, March.
    3. Bartleet, Matthew & Iyer, Kris & Lawrence, Gillian & Numan-Parsons, Elisabeth & Stroombergen, Adolf, 2009. "Impact of emissions pricing on New Zealand manufacturing: A short-run analysis," Occasional Papers 10/2, Ministry of Economic Development, New Zealand.
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    Cited by:

    1. Anton Hartl, 2019. "The effects of the Kyoto Protocol on the carbon trade balance," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 155(3), pages 539-574, August.
    2. Numan-Parsons, Elisabeth & Stroombergen, Adolf Stroombergen & Fletcher, Ngaio, 2011. "Business Responses to the Introduction of the New Zealand Emissions Trading Scheme: Part I," Occasional Papers 11/4, Ministry of Economic Development, New Zealand.

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