New Zealand’s Emissions trading gamble
CIS Digest 9 July 2010
by Luke Malpass
* What happens if New Zealand’s carbon market is not matched by one in Australia, which may well be dependent on actions emerging in the United States, India and China?
* As an exporting nation, what will happen to New Zealand’s competitive advantage as transitional arrangements are phased out and comparative cost structures rise?
* If the international political consensus on pricing carbon collapses, what will happen to New Zealand’s scheme? Will it be scrapped?
* If the scheme is scrapped, what will happen to the value that will be destroyed, i.e. the property rights inherent in carbon permits?