IDEAS home Printed from https://ideas.repec.org/p/ags/nzar12/144270.html
   My bibliography  Save this paper

Synergies between Nutrient Trading Scheme and the New Zealand Greenhouse Gas (GHG) Emissions Trading Scheme (ETS) in the Lake Rotorua Catchment

Author

Listed:
  • Yeo, Boon-Ling
  • Anastasiadis, Simon
  • Kerr, Suzi
  • Browne, Oliver

Abstract

The intensity of agricultural production affects both nutrient and greenhouse gas emissions. Environmental policy designed to reduce one type of pollution may have complementary effects on the other type. This paper explores this issue in the Lake Rotorua catchment in New Zealand using an agro-environmental economic model, NManager. The Regional Council is planning to implement a nutrient trading scheme (NTS) to reduce nutrient discharges to the lake, especially from non-point sources such as farmland, while at the same time the NZ government is planning the agricultural sector into the GHG emissions trading scheme (ETS). We model the abatement costs, potential level of total cost savings; and environmental impacts of agricultural production under three policy scenarios: the inclusion of agricultural in (1) the nutrient trading market only; (2) the NZ GHG emissions trading scheme (ETS) only; and (3) both the nutrient trading market and the NZ ETS concurrently. We find both analytically and numerically that (i) the total level of GHG mitigation is higher when there exist both the NTS and NZ ETS compared to when there is only a NZ ETS; (ii) the permit price of nutrient discharges is inversely related to the permit price of GHG emissions; and (iii) the total economic profit loss from pollution abatement is lower when GHG emissions and nutrient discharges are managed concurrently compared to the sum of the economic profit loss from regulating GHG emissions and nutrient discharges separately.

Suggested Citation

  • Yeo, Boon-Ling & Anastasiadis, Simon & Kerr, Suzi & Browne, Oliver, 2012. "Synergies between Nutrient Trading Scheme and the New Zealand Greenhouse Gas (GHG) Emissions Trading Scheme (ETS) in the Lake Rotorua Catchment," 2012 Conference, August 31, 2012, Nelson, New Zealand 144270, New Zealand Agricultural and Resource Economics Society.
  • Handle: RePEc:ags:nzar12:144270
    as

    Download full text from publisher

    File URL: http://purl.umn.edu/144270
    Download Restriction: no

    References listed on IDEAS

    as
    1. Richard G. Newell & William A. Pizer & Daniel Raimi, 2014. "Carbon Markets: Past, Present, and Future," Annual Review of Resource Economics, Annual Reviews, vol. 6(1), pages 191-215, October.
    2. Shortle, James S. & Horan, Richard D., 2008. "The Economics of Water Quality Trading," International Review of Environmental and Resource Economics, now publishers, vol. 2(2), pages 101-133, October.
    3. Daigneault, Adam J. & Greenhalgh, Suzie & Samarasinghe, Oshadhi, 2011. "Estimated Impacts of New Zealand Agriculture Climate Policy: A Tale of Two Catchments," 2011 Conference, August 25-26, 2011, Nelson, New Zealand 115352, New Zealand Agricultural and Resource Economics Society.
    4. Woodward, Richard T., 2011. "Double-dipping in environmental markets," Journal of Environmental Economics and Management, Elsevier, vol. 61(2), pages 153-169, March.
    5. Kelly Lock & Suzi Kerr, 2008. "Nutrient Trading in Lake Rotorua: Overview of a Prototype System," Working Papers 08_02, Motu Economic and Public Policy Research.
    6. Peter Michaelis, 1992. "Global warming: Efficient policies in the case of multiple pollutants," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 2(1), pages 61-77, January.
    Full references (including those not matched with items on IDEAS)

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:nzar12:144270. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search). General contact details of provider: http://edirc.repec.org/data/nzareea.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.