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

 

Adding Up The Costs Of Climate-Change Policy

Adding Up The Costs Of Climate-Change Policy

INSIGHTS ABOUT THE NEWS - Climate-change policy and reducing greenhouse gas emissions are among the most testing issues facing policy advisers and politicians around the world.

As reported in the NZ Energy & Environment Business Alert, like most other countries, NZ has decided the use of price signals to change behaviour and weight costs in favour of low-pollution options is the best way forward.

The preferred model of Labour and National is the Emissions Trading Scheme. Under National this has failed to send price signals of any significance because the party is more concerned about damaging the economy than climate change.

Labour’s response is to “restore” the ETS and state it would, in a world-first, bring farm animal emissions into the scheme by 2020 with 90% free emissions. Presumably this would mean an increase in the carbon price, but, like much of Labour’s policy, the details which matter are deferred to a future committee.

To their credit the Greens put out a climate change policy with detail, but it was reported in a way to make it seem like emissions could be reduced without anyone feeling any economic pain. Leader James Shaw even said everyone would be better off.

The Greens want to scrap the ETS and replace it with charges on all emissions set at $40/t of carbon dioxide emissions with $6/t for nitrous oxide emissions and $3/t of methane emissions from agriculture.

The Greens say these charges would raise $1.7bn in 2020. This means higher fuel and power prices and new charges on farmers. Businesses will have to absorb or pass on the costs where they can. The passed-on costs mean households which can’t change behaviour or afford to will have to pay more.

The Greens propose the $1.7bn would be recycled through paying for forests (about $630m), compensating NZU holders ($106m) and a dividend (each adult $250 and costing $990m).

The Greens “estimate a $40 carbon price would add an additional $33 per year to electricity bills and $60 a year to fuel costs for an average household.” However, this cost is less than $200m a year, which would leave a lot for businesses and others to cover to raise $1.7bn a year.

The Greens estimate an average dairy farm would pay $4621 a year and an average sheep and beef farm would pay $6083. This would still leave the Govt well short of the $1.7bn a year in revenue, but farms would still have to wear or pass on the cost where they could.

The Greens say an average dairy farmer makes $267,000 a year pretax profit and the average sheep and beef farm $136,000 profit. The assumptions about profitability of farming appear to be on the heroic side as the last survey by DairyNZ showed dairy gross farm revenue per ha in 2015/16 was $4,804 and the business profit before tax per all effective ha in 2015/2016 was minus $734.

Trans Tasman’s sister publication, NZ Energy & Environment Business Alert, is a weekly source providing you with in-depth news, analysis and opinion on NZ’s energy and environment sectors.


ends

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: Ten Reasons For Not Voting National

if anyone you know is thinking of voting National in Saturday’s election, there’s still time for an intervention. You owe it to your friends and relations to intercede.

Why? Because there’s plenty of evidence on National’s mediocre-to-awful track record over its nine years in power. We can’t afford another three years of drift. More>>

 
 

Charge Protests: Dairy Farms Use Same Amount Of Water As 60 Million People

Using Dairy NZ numbers, economist Peter Fraser and agricultural consultant Dr Alison Dewes calculate the water consumption of New Zealand dairy farms is equivalent to the residential use of 60 million people. More>>

ALSO:

Greenpeace: Labour, Greens Commit To Canterbury Democracy

Labour MP Megan Woods is promising to return Canterbury’s regional council, ECan, to a democratically elected council. It follows a mass day-long occupation of the ECan building by local water activists calling for the restoration of democracy and urgent action to save rivers. More>>

Gordon Campbell: On National’s Mickey Mouse Policies On Trade

Supposedly, trade is war by other means, and the rationale for it seems just as empty-headed. Once again, the free trade = good mantra was taken as a patriotic given in this morning’s RNZ interview with Trade Minister Todd McClay. More>>

ALSO:

Taxing Campaign: No Changes From Labour's Working Group In First Term

“We know it is important to get this right, so we will balance the need for certainty and urgency by ensuring that any potential changes will not come into effect until the 2021 tax year. This gives multiple opportunities for public input, and a general election before any new tax would come into effect." More>>

ALSO:

Gordon Campbell: On The Politics Of Fear And Neglect

Is the country able to tackle the serious problems we face in health, housing, education and income inequality – or will it allow itself to be spooked by lies and diversions into settling for another three years of evasion and denial? More>>

ALSO:

 
 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages

Opening the Election
 
 
 
  • PublicAddress
  • Pundit
  • Kiwiblog