IDEAS home Printed from https://ideas.repec.org/a/spr/masfgc/v20y2015i8p1487-1509.html
   My bibliography  Save this article

Achieving and maintaining institutional feasibility in emissions trading: the case of New Zealand

Author

Listed:
  • Jessika Richter
  • Luis Mundaca

Abstract

Emission trading schemes (ETS) have emerged as a popular climate policy measure and are increasingly advocated as policy instruments to support the transition to a green economy. Using complementary analytical methods, this research investigated the institutional developments and complexities of the New Zealand Emissions Trading Scheme (NZ ETS). It focuses on (1) institutional experience and administrative capacity, and (2) political acceptance during formation, design, implementation, and review. The research answer questions concerning critical conditions that have affected the institutional feasibility of the NZ ETS and the trade-offs in achieving and maintaining institutional feasibility. The experience in New Zealand has demonstrated that bipartisan political support and obliged participant acceptance for an ETS can be achieved and the administrative burden can be kept low through an inclusive consultation process and particular aspects of design to provide more certainty about costs. However, this institutional feasibility has also been a trade-off with other important aspects such as environmental effectiveness, predictability, and legitimacy, posing risks to maintaining political acceptance of the policy design and achieving the longer term objectives of transitioning to a green economy. Copyright Springer Science+Business Media Dordrecht 2015

Suggested Citation

  • Jessika Richter & Luis Mundaca, 2015. "Achieving and maintaining institutional feasibility in emissions trading: the case of New Zealand," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 20(8), pages 1487-1509, December.
    • Handle: RePEc:spr:masfgc:v:20:y:2015:i:8:p:1487-1509
    DOI: 10.1007/s11027-014-9557-4
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/s11027-014-9557-4
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s11027-014-9557-4?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Mundaca, Luis & Neij, Lena, 2009. "A multi-criteria evaluation framework for tradable white certificate schemes," Energy Policy, Elsevier, vol. 37(11), pages 4557-4573, November.
    2. Wolfgang Sterk & Ralf Schüle, 2009. "Advancing the climate regime through linking domestic emission trading systems?," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 14(5), pages 409-431, June.
    3. Robert W. Hahn & Robert N. Stavins, 2011. "The Effect of Allowance Allocations on Cap-and-Trade System Performance," Journal of Law and Economics, University of Chicago Press, vol. 54(S4), pages 267-294.
    4. Anna-Luis Cook, 2004. ""Managing for Outcomes" in the New Zealand Public Management System," Treasury Working Paper Series 04/15, New Zealand Treasury.
    5. Reserve Bank of New Zealand, 2012. "For the record," Reserve Bank of New Zealand Bulletin, Reserve Bank of New Zealand, vol. 75, pages 67-79, September.
    6. R. H. Coase, 2013. "The Problem of Social Cost," Journal of Law and Economics, University of Chicago Press, vol. 56(4), pages 837-877.
    7. Stavins, Robert, 2003. "Market-Based Environmental Policies: What Can We Learn from U.S. Experience (and Related Research)?," RFF Working Paper Series dp-03-43, Resources for the Future.
    8. Hahn, Robert W., 2000. "The Impact of Economics on Environmental Policy," Journal of Environmental Economics and Management, Elsevier, vol. 39(3), pages 375-399, May.
    9. Jacoby, Henry D. & Ellerman, A. Denny, 2004. "The safety valve and climate policy," Energy Policy, Elsevier, vol. 32(4), pages 481-491, March.
    10. 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.
    11. Reserve Bank of New Zealand, 2012. "For the Record," Reserve Bank of New Zealand Bulletin, Reserve Bank of New Zealand, vol. 75, pages 31-38, June.
    12. Reserve Bank of New Zealand, 2012. "For the record," Reserve Bank of New Zealand Bulletin, Reserve Bank of New Zealand, vol. 75, pages 46-53, March.
    13. Eric Karpas & Suzi Kerr, 2011. "Preliminary Evidence on Responses to the New Zealand Forestry Emissions Trading Scheme," Working Papers 11_09, Motu Economic and Public Policy Research.
    14. repec:dau:papers:123456789/10174 is not listed on IDEAS
    15. Venmans, Frank, 2012. "A literature-based multi-criteria evaluation of the EU ETS," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(8), pages 5493-5510.
    16. Jon Birger Skjærseth & Jørgen Wettestad, 2009. "The Origin, Evolution and Consequences of the EU Emissions Trading System," Global Environmental Politics, MIT Press, vol. 9(2), pages 101-122, May.
    17. Nan Jiang & Basil Sharp & Mingyue Sheng, 2009. "New Zealand's emissions trading scheme," New Zealand Economic Papers, Taylor & Francis Journals, vol. 43(1), pages 69-79.
    18. Ellerman,A. Denny & Buchner,Barbara K. & Carraro,Carlo (ed.), 2007. "Allocation in the European Emissions Trading Scheme," Cambridge Books, Cambridge University Press, number 9780521875684, January.
    19. Markussen, Peter & Svendsen, Gert Tinggaard, 2005. "Industry lobbying and the political economy of GHG trade in the European Union," Energy Policy, Elsevier, vol. 33(2), pages 245-255, January.
    20. Reserve Bank of New Zealand, 2012. "For the record," Reserve Bank of New Zealand Bulletin, Reserve Bank of New Zealand, vol. 75, pages 36-46, December.
    21. Steffen Brunner & Christian Flachsland & Robert Marschinski, 2012. "Credible commitment in carbon policy," Climate Policy, Taylor & Francis Journals, vol. 12(2), pages 255-271, March.
    22. Jotzo, Frank, 2012. "Australia’s carbon price," Working Papers 249401, Australian National University, Centre for Climate Economics & Policy.
    23. Alexandre Kossoy & Klaus Oppermann & Rama Chandra Reddy & Martina Bosi & Sandrine Boukerche & Niklas Höhne & Noémie Klein & Alyssa Gilbert & Martina Jung & Bram Borkent & Long Lam & Frauke Röser & Nad, "undated". "Mapping Carbon Pricing Initiatives : Developments and Prospects 2013," World Bank Publications - Reports 15771, The World Bank Group.
    24. Braun, Marcel, 2009. "The evolution of emissions trading in the European Union - The role of policy networks, knowledge and policy entrepreneurs," Accounting, Organizations and Society, Elsevier, vol. 34(3-4), pages 469-487, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Shenhai Huang & Chao Du & Xian Jin & Daini Zhang & Shiyan Wen & Zhijie Jia, 2023. "The Impact of Carbon Emission Trading on Renewable Energy: A Comparative Analysis Based on the CGE Model," Sustainability, MDPI, vol. 15(16), pages 1-16, August.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Venmans, Frank, 2012. "A literature-based multi-criteria evaluation of the EU ETS," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(8), pages 5493-5510.
    2. Jitmaneeroj, Boonlert & Lamla, Michael J. & Wood, Andrew, 2019. "The implications of central bank transparency for uncertainty and disagreement," Journal of International Money and Finance, Elsevier, vol. 90(C), pages 222-240.
    3. R. Erasmus & H. Hollander, 2020. "A Forward Guidance Indicator For The South African Reserve Bank: Implementing A Text Analysis Algorithm," Studies in Economics and Econometrics, Taylor & Francis Journals, vol. 44(3), pages 41-72, December.
    4. Gunda‐Alexandra Detmers & Ozer Karagedikli & Richhild Moessner, 2021. "Quantitative or Qualitative Forward Guidance: Does it Matter?," The Economic Record, The Economic Society of Australia, vol. 97(319), pages 491-503, December.
    5. Richhild Moessner & David-Jan Jansen & Jakob de Haan, 2017. "Communication About Future Policy Rates In Theory And Practice: A Survey," Journal of Economic Surveys, Wiley Blackwell, vol. 31(3), pages 678-711, July.
    6. repec:hum:wpaper:sfb649dp2016-041 is not listed on IDEAS
    7. Malanson, George P. & DeRose, R. Justin & Bekker, Matthew F., 2019. "Individual variation and ecotypic niches in simulations of the impact of climatic volatility," Ecological Modelling, Elsevier, vol. 411(C).
    8. Eilya Torshizian & Arthur Grimes, 2021. "Household Crowding Measures: A Comparison and External Test of Validity," Journal of Happiness Studies, Springer, vol. 22(4), pages 1925-1951, April.
    9. Richhild Moessner & Phurichai Rungcharoenkitkul, 2019. "The zero lower bound, forward guidance and how markets respond to news," BIS Quarterly Review, Bank for International Settlements, March.
    10. Michael Frenkel & Jin-Kyu Jung & Jan-Christoph Rülke, 2017. "Rationalizing the Bias in Central Banks' Interest Rate Projections," WHU Working Paper Series - Economics Group 17-03, WHU - Otto Beisheim School of Management.
    11. Detmers, Gunda-Alexandra, 2016. "Forward Guidance under Disagreement - Evidence from the Fed’s dot projections," VfS Annual Conference 2016 (Augsburg): Demographic Change 145768, Verein für Socialpolitik / German Economic Association.
    12. Detmers, Gunda-Alexandra, 2016. "Forward guidance under disagreement: Evidence from the Fed's dot projections," SFB 649 Discussion Papers 2016-041, Humboldt University Berlin, Collaborative Research Center 649: Economic Risk.
    13. Detmers, Gunda-Alexandra & Nautz, Dieter, 2014. "Stale forward guidance," Economics Letters, Elsevier, vol. 124(3), pages 358-361.
    14. Michael Frenkel & Jin-Kyu Jung & Jan-Christoph Rülke, 2022. "Testing for the rationality of central bank interest rate forecasts," Empirical Economics, Springer, vol. 62(3), pages 1037-1078, March.
    15. Jin-Kyu Jung & Michael Frenkel & Jan-Christoph Rülke, 2019. "On the consistency of central banks´ interest rate forecasts," Economics Bulletin, AccessEcon, vol. 39(1), pages 701-716.
    16. Jakub Rybacki, 2019. "Does Forward Guidance Matter in Small Open Economies? Examples from Europe," Econometric Research in Finance, SGH Warsaw School of Economics, Collegium of Economic Analysis, vol. 4(1), pages 1-26, June.
    17. Galati, Gabriele & Moessner, Richhild, 2021. "Effects of Fed policy rate forecasts on real yields and inflation expectations at the zero lower bound," Economics Letters, Elsevier, vol. 198(C).
    18. Åhl, Magnus, 2017. "How big is the toolbox of a central banker? Managing expectations with policy-rate forecasts: Evidence from Sweden," Working Paper Series 339, Sveriges Riksbank (Central Bank of Sweden).
    19. Jianbin Situ & Ziying Mo, 2016. "Risk Propensity, Gambling Cognition and Gambling Behavior: The Role of Family and Peer Influences," Journal of Educational and Developmental Psychology, Canadian Center of Science and Education, vol. 6(1), pages 1-77, May.
    20. Daan Steenkamp, 2014. "Measuring New Zealand’s effective exchange rate," Reserve Bank of New Zealand Bulletin, Reserve Bank of New Zealand, vol. 77, pages 1-15, December.
    21. Lars E.O. Svensson, 2014. "Forward Guidance," NBER Working Papers 20796, National Bureau of Economic Research, Inc.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:masfgc:v:20:y:2015:i:8:p:1487-1509. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.