Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 


Hodgson Responds To GPC/PEANZ Report

Hodgson Responds To GPC/PEANZ Report On Climate Change Policies

Energy Minister Pete Hodgson says the report The Economic Effects of Greenhouse Gas Emission Policies: A quantitative evaluation is a contribution to the climate change debate that must be taken “with a large pinch of salt”.

Mr Hodgson said the analytical limitations of the report, released by business groups the Greenhouse Policy Coalition and the Petroleum Exploration Association, meant its conclusions about the possible economic impacts of climate change policies should be read with caution.

“The impacts analysis commissioned by the Government from the Australian Bureau of Agricultural and Resource Economics (ABARE) suggested the econonomic impact of climate change policies would be slightly positive overall,” Mr Hodgson said. “This report says the impact could range between slightly negative and very negative, depending on how extreme a policy scenario is applied.”

“This report is interesting but not illuminating, given the uncertainty surrounding its conclusions. An independent review commissioned by the Department of Prime Minister and Cabinet from Infometrics economist Adolf Stroombergen notes that ‘it is not at all clear that the scenarios present a plausible picture of the economic effects of policies to reduce emissions’.

Mr Stroombergen says the uncertainty surrounding the report’s conclusions on economic impacts is primarily due to a shortage of information on its base assumptions, insufficient explanation of the economic model it uses and a lack of testing of the model’s sensitivity to variation in critical parameters.

“I would add that the GPC/PEANZ report makes misguided assumptions about New Zealand’s energy needs, fails to take account of the incentives created by early certainty of climate change policy and shows no comprehension of international political reality in its policy analysis,” Mr Hodgson said.

“The report assumes that New Zealand’s present level of inefficiency in energy use must continue and completely overlooks the greenhouse gas emission reductions that even partial success for the National Energy Efficiency and Conservation Strategy would achieve. It assumes businesses would be hit by climate change policies as if by lightning, when in fact they will have years to adjust behaviour and position themselves to minimise the impacts.

“Most incredibly, the report’s conclusion that New Zealand should meet its Kyoto Protocol obligations entirely with carbon sink credits, while doing nothing to reduce emissions, completely ignores the political reality of our position in international climate change negotiations. Far from enabling the government ‘to position the New Zealand economy for the second commitment period in the least damaging fashion’, this approach would demolish New Zealand’s credibility in negotiations and make it extremely difficult to get targets for the second commitment period that were remotely achievable.

“Notwithstanding its shortcomings, the report is a worthwhile contribution to the debate on climate change policy now under way in New Zealand. By modelling a series of extreme scenarios, NZIER have shown that poor policy would lead to serious economic effects. That is why the government is consulting widely on climate change policy now, and will consult widely again next year when we have developed a preferred policy package.”

Ends

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

 

Also, Loan Interest: Productivity Commission On Tertiary Education

Key recommendations include better quality control; making it easier for students to transfer between courses; abolishing University Entrance; enabling tertiary institutions to own and control their assets; making it easier for new providers to enter the system; and facilitating more and faster innovation by tertiary education providers... More>>

ALSO:

Higher Payments: Wellington Regional Council Becomes A Living Wage Employer

Councillor Sue Kedgley said she was delighted that the Wellington Regional Council unanimously adopted her motion to become a Living Wage employer, making it the first regional council in New Zealand to do so. More>>

ALSO:

Scoop Images:
Dame Patsy Reddy Sworn In As Governor-General

This morning Dame Patsy Reddy was sworn in as the New Zealand Realm’s 21st Governor-General. The ceremony began with a pōwhiri to welcome Dame Patsy and her husband Sir David Gascoigne to Parliament. More>>

ALSO:

Ruataniwha: DOC, Hawke's Bay Council Developer Take Supreme Court Appeal

The Department of Conservation and Hawke's Bay Regional Investment Company (HBRIC) are appealing to the Supreme Court over a conservation land swap which the Court of Appeal halted. More>>

ALSO:

With NZ's Marama Davidson: Women’s Flotilla Leaves Sicily – Heading For Gaza

Women representing 13 countries spanning five continents began their journey yesterday on Zaytouna-Oliva to the shores of Gaza, which has been under blockade since 2007. On board are a Nobel Peace Laureate, three parliamentarians, a decorated US diplomat, journalists, an Olympic athlete, and a physician. A list of the women with their background can be found here. More>>

Gordon Campbell: On The Key Style Of Crisis Management

At Monday’s post Cabinet press conference Key was in his finest wide- eyed “Problem? What problem?” mode. No, there wasn’t really a problem that top MPI officials had been at odds with each other over the meaning of the fisheries policy and how that policy should be pursued... More>>

ALSO:

Mt Roskill: Greens Will Not Stand In Likely Post-Goff By-Election

“The Green Party’s priority is changing the Government in 2017, and as part of that we’ve decided that we won’t stand a candidate in the probable Mt Roskill by-election... This decision shows the Memorandum of Understanding between Labour and the Green Party is working." More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news