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Estimated Impacts of New Zealand Agriculture Climate Policy: A Tale of Two Catchments

  • Daigneault, Adam J.
  • Greenhalgh, Suzie
  • Samarasinghe, Oshadhi

Agricultural and forestry greenhouse gas (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 (NZETS). Forestry entered the NZETS in 2008 while agricultural emissions are expected to enter in 2015. Coupled with climate policy development is the increasing scrutiny of agricultural impacts on water in New Zealand. Given the multiple forms of environmental regulation facing the agricultural and forestry industries we explore, at the catchment level, the impacts of climate policy on the agricultural and forestry industries, including those on farm returns, GHG emissions, carbon sequestration, water quality and induced land use change. We use the recently developed New Zealand Forest and Agriculture Regional Model (NZ-FARM) to assess potential economic and environmental impacts of a climate policy that imposes a series of carbon prices on GHG emissions of land-based production in the Manawatu and Hurunui/Waiau catchments in New Zealand.

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Paper provided by New Zealand Agricultural and Resource Economics Society in its series 2011 Conference, August 25-26, 2011, Nelson, New Zealand with number 115352.

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Date of creation: 2011
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Handle: RePEc:ags:nzar11:115352
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  1. Anna Strutt & Allan N. Rae, 2011. "Modelling the Impact of Policies to Reduce Environmental Impacts in the New Zealand Dairy Sector," Working Papers in Economics 11/04, University of Waikato, Department of Economics.
  2. Suzi Kerr & Wei Zhang, 2009. "Allocation of New Zealand Units within Agriculture in the New Zealand Emissions Trading System," Working Papers 09_16, Motu Economic and Public Policy Research.
  3. Tee, James & Scarpa, Riccardo & Marsh, Dan & Guthrie, Graeme, 2011. "Climate Change Mitigation Policy: The Effect of the New Zealand Emissions Trading Scheme on New Radiata Pine Forest Plantations in New Zealand," 2011 Conference (55th), February 8-11, 2011, Melbourne, Australia 100703, Australian Agricultural and Resource Economics Society.
  4. Johansson, Robert & Peters, Mark & House, Robert, 2007. "Regional Environment and Agriculture Programming Model," Technical Bulletins 184314, United States Department of Agriculture, Economic Research Service.
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