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Economic and environmental impacts of implementing multiple agro-environmental policies in New Zealand

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  • Daigneault, Adam J.
  • Greenhalgh, Suzie
  • Samarasinghe, Oshadhi

Abstract

Agricultural and forestry GHG emissions are a key feature of New Zealand’s emissions profile, and New Zealand is the only country, to date, to have indicated that agricultural and forestry emissions will be covered under their domestic climate policy – the New Zealand Emissions Trading Scheme. Coupled with climate policy development is the increasing scrutiny of agricultural impacts on water. This paper uses New Zealand Forest and Agriculture Regional Model (NZ-FARM) to assess the potential economic and environmental impacts of imposing both a climate and nutrient reduction policy on the agricultural and forestry industries in the Manawatu and Hurunui/Waiau catchments in New Zealand. We find that adding a scheme that reduces catchment-level nutrients by 20% on top of a national policy that puts a price of $25 per ton carbon dioxide equivalent on agricultural GHG emissions could result in greater environmental benefits at a relatively small cost, but the converse is not always true and could be significantly more costly for landowners.

Suggested Citation

  • Daigneault, Adam J. & Greenhalgh, Suzie & Samarasinghe, Oshadhi, 2013. "Economic and environmental impacts of implementing multiple agro-environmental policies in New Zealand," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150572, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea13:150572
    DOI: 10.22004/ag.econ.150572
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    References listed on IDEAS

    as
    1. Johansson, Robert & Peters, Mark & House, Robert, 2007. "Regional Environment and Agriculture Programming Model," Technical Bulletins 184314, United States Department of Agriculture, Economic Research Service.
    2. Joanna Hendy & Suzi Kerr & Troy Baisden, 2006. "Greenhouse gas emissions charges and credits agricultural land: what can a model tell us?," Working Papers 06_04, Motu Economic and Public Policy Research.
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