Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Cash incentives best to curb dangerous emissions

Cash incentives best to curb dangerous emissions

The New Zealand Business Council for Sustainable Development says its policy to pay cash incentives to climate friendly cars buyers is firmly backed up by a new report to Europe's transport ministers.

The report was prepared by NERA, a leading London-based economic consultancy, with support from the world's leading automobile organisation, the FIA. It reviews ways to lower health and climate harming CO2 emissions by the transport sector.

The Government here is investigating a Business Council proposal backed by six out of 10 New Zealanders in nationwide polling to pay cash incentives of up to $3000 to buyers of low emission, fuel efficient cars.

The report to the European Council of Transport Ministers, reviewing measures taken in Europe and worldwide, says improving vehicle fuel efficiency through fiscal incentives ranks third among the most effective in cutting CO2 emissions.

"There is considerable potential for differentiating vehicle taxes in more countries, improving the basis for differentiation, increasing the range of vehicles subject to incentives and increasing the size of the incentives created," the report says.

It also says there are huge gains to be made from teaching people to drive in fuel efficient ways, and vehicle taxes could be effectively based on fuel and emission efficiency, rather than engine displacement or power or weight.

Business Council Chief Executive Peter Neilson says transport in New Zealand is pumping more than 14 million tonnes of CO2 equivalent into the air each year, the second biggest greenhouse gas emission behind agriculture.

The vehicle emissions are causing 970 people over the age of 30 to die prematurely each year.

"Incentives to choose fuel efficient, low emission cars are about to be introduced federally in the United States. Lower taxes or other incentives for these vehicles are in place in the some US states, the United Kingdom and throughout Europe.

"While higher fuel prices are also an incentive to buy more fuel efficient cars, as we are seeing in the latest New Zealand small car sales figures, they're not enough on their own.

"Petrol will need to hit $4 a litre here before we see a significant switch to climate friendly cars. Even at current petrol prices, the rise in small car sales to a rate of about 16,608 a year won't achieve any rapid or big change. That means just 83,000 smaller cars will be sold over the next five years. With cash incentives, our research shows 430,000 fuel efficient, low emission cars not just small ones could enter the national fleet over the next five years.

"Yes, some people are buying small cars and that's fine. But other people need help. We need to ensure climate friendly cars which include everything from a hybrid to the latest diesel powered BMWs and Audis and XJ Jaguar are made viable for companies to buy. They are then passed on through the fleet. And we need a disincentive to slow down the importation of new and used cars from abroad which wouldn't be allowed on the roads in Japan, Europe or the United States," Mr Neilson says.

The cash incentives policy will cost the Government $103 million a year.

The Business Council says the pay back will be significant for the Government. It will improve air quality, quality of life, help cut a $400 million a year health bill for treating people whose respiratory and other conditions are aggravated by petrol particle pollution, and cut the death toll from petrol pollution, running at more than double the road toll.


© Scoop Media

Business Headlines | Sci-Tech Headlines


I Sing The Highway Electric: Charge Net NZ To Connect New Zealand

BMW is turning Middle Earth electric after today announcing a substantial contribution to the charging network Charge Net NZ. This landmark partnership will enable Kiwis to drive their electric vehicles (EVs) right across New Zealand through the installation of a fast charging highway stretching from Kaitaia to Invercargill. More>>


Watch This Space: Mahia Rocket Lab Launch Site Officially Opened

Economic Development Minster Steven Joyce today opened New Zealand’s first orbital launch site, Rocket Lab Launch Complex 1, on the Mahia Peninsula on the North Island’s east coast. More>>


Marketing Rocks!
Ig Nobel Award Winners Assess The Personality Of Rocks

A Massey University marketing lecturer has received the 2016 Ig Nobel Prize for economics for a research project that asked university students to describe the “brand personalities” of three rocks. More>>


Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>


Half A Billion Accounts, Including Xtra: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>


Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news