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Greenhouse gas emissions charges and credits agricultural land: what can a model tell us?

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Author Info
Joanna Hendy () (Motu Economic and Public Policy Research)
Suzi Kerr () (Motu Economic and Public Policy Research)
Troy Baisden () (Landcare Research)

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Abstract

Using the simulation model Land Use in Rural New Zealand version 1 -climate (LURNZv1-climate), we simulate the effects of an agricultural land-use emissions charge and a reward for native forest and scrub regeneration. Our results are preliminary and at this stage should be considered illustrative. We find that, on its own, an agricultural emissions charge based on solely on land use would be disruptive and may not be very effective in reducing emissions. In addition, we find that including an additional policy that rewards regenerating forest and scrub without a similar reward for plantation forestry might negatively impact on plantation forestry, increasing emissions growth in the short-run. We are currently developing a second version of LURNZ-climate, which will be more robust and thus lend more weight to our future results.

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File URL: http://motu-www.motu.org.nz/wpapers/06_04.pdf
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Publisher Info
Paper provided by Motu Economic and Public Policy Research in its series Working Papers with number 06_04.

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Length: 17 pages
Date of creation: Jun 2006
Date of revision:
Handle: RePEc:mtu:wpaper:06_04

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Web page: http://www.motu.org.nz
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Related research
Keywords: Climate change; land use; methane; nitrous oxide; dairy; sheep; beef; Government policy;

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Find related papers by JEL classification:
Q24 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Land
Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation
Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy
R14 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Land Use Patterns
Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters
Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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References listed on IDEAS
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.:
  1. Joanna Hendy & Suzi Kerr, 2005. "Greenhouse Gas Emission Factor Module: Land Use in Rural New Zealand - Climate Version 1," Working Papers 05_10, Motu Economic and Public Policy Research. [Downloadable!]
  2. Suzi Kerr & Joanna Hendy & Emma Brunton & Isabelle Sin, 2005. "The likely regional impacts of an agricultural emissions policy in New Zealand: Preliminary analysis," Working Papers 05_08, Motu Economic and Public Policy Research. [Downloadable!]
    Other versions:
  3. Joanna Hendy & Suzi Kerr, 2006. "Land Use Intensity Module: Land Use in Rural New Zealand Version 1," Working Papers 06_05, Motu Economic and Public Policy Research. [Downloadable!]
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Cited by:
(explanations, 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.)

  1. Lennox, J.A. & Andrew, R. & Forgie, V., 2008. "Price effects of an emissions trading scheme in New Zealand," 107th Seminar, January 30-February 1, 2008, Sevilla, Spain 6678, European Association of Agricultural Economists. [Downloadable!]
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This page was last updated on 2009-11-26.


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