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The likely regional impacts of an agricultural emissions policy in New Zealand: Preliminary analysis

Author

Listed:
  • Suzi Kerr

    (Motu Economic and Public Policy Research)

  • Joanna Hendy

    (Motu Economic and Public Policy Research)

  • Emma Brunton

    (Motu Economic and Public Policy Research)

  • Isabelle Sin

    (Motu Economic and Public Policy Research)

Abstract

Hendy and Kerr (2005b) find that an emissions charge on agricultural methane and nitrous oxide of $25 per tonne of carbon dioxide (CO2) equivalent would be likely to reduce New Zealand's net land-use related emissions for commitment period one in the order of 3%, with full accounting. The costs per farmer and as a percentage of profit would be very high. This paper considers the regional impacts of such a policy in New Zealand by allocating the emission charge across space according to the location of animals. We then combine our emissions charge information with data on the socio-economic characteristics of the affected areas. Obviously rural areas are heavily affected. In many respects, for example median income, ethnic mix, and percentage of working people with a university degree, the rural areas most affected have very similar socio-economic characteristics to other parts of rural New Zealand. Only in two ways do they appear to differ. Our findings indicate that areas with high emission costs tend to have high employment rates, but that they also have a disproportionately high number of unqualified people.

Suggested Citation

  • Suzi Kerr & Joanna Hendy & Emma Brunton & Isabelle Sin, 2005. "The likely regional impacts of an agricultural emissions policy in New Zealand: Preliminary analysis," Working Papers 05_08, Motu Economic and Public Policy Research.
    • Handle: RePEc:mtu:wpaper:05_08
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    References listed on IDEAS

    as
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    Cited by:

    1. Levente Timar, 2016. "Does money grow on trees? Mitigation under climate policy in a heterogeneous sheep-beef sector," Working Papers 16_09, Motu Economic and Public Policy Research.
    2. Michelle Poland & David C Maré, 2005. "Defining Geographic Communities," Urban/Regional 0509016, University Library of Munich, Germany.
    3. Joanna Hendy & Suzi Kerr & Troy Baisden, 2007. "The Land Use in Rural New Zealand Model Version 1 (LURNZv1: Model Description)," Working Papers 07_07, Motu Economic and Public Policy Research.
    4. 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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    More about this item

    Keywords

    climate change; land use; social impacts; methane; nitrous oxide; dairy; sheep; beef; distribution of costs; regional;
    All these keywords.

    JEL classification:

    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy
    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns

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