The Taxpayers’ Union says the Climate Change Commission’s economic forecasts appear ridiculously optimistic, and that the approach of central planning, rather than relying on the ETS, is counterproductive.
The following can be attributed to the Taxpayers’ Union spokesman Louis Houlbrooke:
Cost to the economy and living standards:
“The one-percent-of-GDP figure contrasts with work done by the NZIER two years ago suggesting this sort of pathway would cost up to 16.8% of GDP. Even on the most optimistic assumptions, one percent is nonsense on stilts.”
Central planning approach is counter productive:
“While the goal is admirable, this document appears to plan wholesale changes to the New Zealand economy through central planning. That didn’t work for economies, and wont work for emissions.”
“New Zealand already has a successful emissions trading scheme. Rather than try to plan every sector’s transformation, the budget should simply determine caps and allow the ETS to do its job. That would see those sectors that can more easily adjust follow market incentives.”
“The key question is this: should politicians be planning who can emit what and when, or should they be setting caps and let New Zealanders figure out where emissions can be most efficiently cut?"
“Instead of applying the ETS, Wellington is applying a ‘we know best’ central planning approach. It will mean the same emissions pathway will have many times the impact on Kiwis wallets' that it needs.”