Economic Impacts of GHG and Nutrient Reduction Policies in New Zealand: A Tale of Two Catchments
AbstractAgricultural and forestry GHG emissions are a key feature of New Zealand’s emissions profile, and New Zealand is the only country, to date, to have indicated that agricultural and forestry emissions will be covered under their domestic climate policy – the New Zealand Emissions Trading Scheme. Coupled with climate policy development is the increasing scrutiny of agricultural impacts on water. This paper uses New Zealand Forest and Agriculture Regional Model (NZ-FARM) to assess the potential economic and environmental impacts of imposing both a climate and nutrient reduction policy on the agricultural and forestry industries in the Manawatu and Hurunui/Waiau catchments in New Zealand. We find that adding a scheme that reduces catchment-level nutrients by 20% on top of a national policy that puts a price of $25 per ton carbon dioxide equivalent on agricultural GHG emissions could result in greater environmental benefits at a relatively small cost, but the converse is not always true and could be significantly more costly for landowners.
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Bibliographic InfoPaper provided by Australian Agricultural and Resource Economics Society in its series 2012 Conference (56th), February 7-10, 2012, Freemantle, Australia with number 124284.
Date of creation: Feb 2012
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Agriculture and forestry modelling; land use; climate policy; water quality; greenhouse gas emissions; nutrient leaching; Environmental Economics and Policy;
This paper has been announced in the following NEP Reports:
- NEP-AGR-2012-06-25 (Agricultural Economics)
- NEP-ALL-2012-06-25 (All new papers)
- NEP-ENV-2012-06-25 (Environmental Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Joanna Hendy & Suzi Kerr & Troy Baisden, 2006. "Greenhouse gas emissions charges and credits agricultural land: what can a model tell us?," Working Papers 06_04, Motu Economic and Public Policy Research.
- Suzi Kerr, 2013. "Managing Risks and Tradeoffs Using Water Markets," Working Papers 13_13, Motu Economic and Public Policy Research.
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- Daigneault, Adam J. & Morgan, Fraser, 2012. "Estimating Impacts of Climate Change Policy on Land Use: An Agent Based Modeling Approach," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124973, Agricultural and Applied Economics Association.
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