Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search

 

New Emmission Reduction Taget COuld Be Very COstly

New Emmission Reduction Taget COuld Be Very COstly

New economic analysis done for the Greenhouse Policy Coalition shows that the emission reduction targets being called for by Greenpeace of a 40% reduction by 2020, would come at a very high cost for every New Zealander, potentially reducing every person’s income by $3,200 by 2020 and doubling the price of energy.

Analysis by economic consultancy Infometrics shows that the carbon price would have to be extremely high to reduce emissions by 40% relative to 1990 emissions. Even at $500/tonne domestic emissions would still exceed a 40% reduction target, requiring the purchase of 8.7 Mt of carbon on international carbon markets.

In addition, at $500/tonne each real gross national disposable income per person reduces by $3,200, and wholesale prices for petrol, gas and electricity double. At lower prices of carbon, there is less domestic emission reduction and more carbon units would need to be purchased on the international carbon markets.

Adolf Stroombergen, chief economist at Infometrics concluded that the price of carbon would need to be extremely high, possibly up to $800-900/tonne, for New Zealand to reduce emissions 40% below 1990 levels if no step-change technologies were available for widespread adoption. However at high carbon prices he expected there would be changes that the model did not readily capture.

“At high carbon prices one would expect that some industries would close completely (rather than substantially reducing output), there would be step changes in consumer behavior, such as how they travel to work, farming would change, and more trees would be planted.”

Adolf Stroombergen noted that 2020 was only eleven years away, and that was not a lot of time for new technology to be developed and widely deployed.

Executive Director of the Greenhouse Policy Coalition, Catherine Beard, says it is important that as the government kicks off a debate about future emission reduction targets in the near term, it is informed by economic analysis on how much various targets will cost.

“Advocates for high emission reduction targets in a short period of time should be clear about how much this will cost New Zealanders. With a growing population, a high percentage of renewable electricity and 70% of our emissions coming from agriculture and transport, there are few low cost abatement opportunities in New Zealand in the short term”.

“These are not targets we can just aspire to, but firm commitments that will come with a hefty price tag if we cannot deliver”, she concluded.

ENDS

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

New Reports: Flood Risk From Rain And Sea Under Climate Change

One report looks at what would happen when rivers are flooded by heavy rain and storms, while the other examines flooding exposure in coastal and harbour areas and how that might change with sea-level rise.

Their findings show that across the country almost 700,000 people and 411,516 buildings worth $135 billion are presently exposed to river flooding in the event of extreme weather events...

There is near certainty that the sea will rise 20-30 cm by 2040. By the end of the century, depending on whether global greenhouse gas emissions are reduced, it could rise by between 0.5 to 1.1 m, which could add an additional 116,000 people exposed to extreme coastal storm flooding. More>>

ALSO:

 
 

Gordon Campbell: On The Commerce Commission Fuel Report

The interim Commerce Commission report on the fuel industry will do nothing to endear the major oil companies to the New Zealand public... More>>

ALSO:

Emergency Govt Bill: Overriding Local Licensing For The Rugby

“It’s pretty clear some clubs are having difficulty persuading their district licensing committees to grant a special licence to extend their hours for this obviously special event, and so it makes sense for Parliament to allow clubs to meet a community desire." More>>

ALSO:

Leaving Contract Early: KiwiBuild Programme Losing Another Top Boss

Ms O'Sullivan began a six-month contract as head of KiwiBuild Commercial in February, but the Housing Ministry has confirmed she has resigned and will depart a month early to take up a new job. More>>

ALSO:

Proposed National Policy Statement: Helping Our Cities Grow Up And Out

“We need a new approach to planning that allows our cities to grow up, especially in city centres and around transport connections. We also have to allow cities to expand in a way that protects our special heritage areas, the natural environment and highly productive land." More>>

ALSO:

Ombudsman's Report: Ngāpuhi Elder 'Shocked' By Conditions At Ngawha Prison

A prominent Ngāpuhi elder is shocked to find inmates at Ngawha Prison are denied water and forced to relieve themselves in the exercise yard... Chief Ombudsman Peter Boshier has released a report highly critical of conditions at the Northland prison. More>>

ALSO:

Promises: Independent Election Policy Costing Unit A Step Closer

The creation of an entity to provide political parties with independent and non-partisan policy costings is a step closer today, according to Finance Minister Grant Robertson and Associate Finance Minister James Shaw. More>>

ALSO:

School's In: Primary And Intermediate Principals Accept New Offer

Primary and intermediate school principals have voted to accept a new settlement from the Ministry of Education, which includes entrenched pay parity with secondary principals. More>>

ALSO:

IPCA On 'Rawshark' Investigation: Multiple Police Failings In Hager Searches Confirmed

The Independent Police Conduct Authority has found that the Police's unlawful search of Nicky Hager's property in October 2014 resulted from an unwitting neglect of duty and did not amount to misconduct by any individual officer... More>>

ALSO:

Broadcasting Standards: Decisions On Coverage Of Mosque Attacks

The Authority upheld one of these complaints, finding that the use of extensive excerpts from the alleged attacker’s livestream video on Sky News New Zealand had the potential to cause significant distress to audiences in New Zealand, and particularly to the family and friends of victims, and the wider Muslim community. More>>

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels