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

  • Joanna Hendy

    ()

    (Motu Economic and Public Policy Research)

  • Suzi Kerr

    ()

    (Motu Economic and Public Policy Research)

  • Troy Baisden

    ()

    (Landcare Research)

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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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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  1. Sin, Isabelle & Brunton, Emma & Hendy, Joanna & Kerr, Suzi, 2005. "The likely regional impacts of an agricultural emissions policy in New Zealand: Preliminary analysis," 2005 Conference, August 26-27, 2005, Nelson, New Zealand 98506, New Zealand Agricultural and Resource Economics Society.
  2. 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.
  3. 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.
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