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Inclusion of Agriculture and Forestry in a Domestic Emissions Trading Scheme: New Zealand's Experience to Date


  • Suzi Kerr

    (Motu Economic and Public Policy Research)

  • Andrew Sweet

    (Firecone New Zealand)


No country has previously attempted to include either agriculture or forestry in an emissions trading system. The New Zealand government is planning to include both. This paper describes how they plan to do it, what some of the critical issues have been and some of the outstanding challenges. If New Zealand can resolve these issues and so can create a strong system, this could create a precedent for many others. Policy development is actively progressing as this paper is written. This paper does not definitively cover the issues but records our thinking at a moment in time and provides a framework for more in-depth analysis.

Suggested Citation

  • Suzi Kerr & Andrew Sweet, 2008. "Inclusion of Agriculture and Forestry in a Domestic Emissions Trading Scheme: New Zealand's Experience to Date," Working Papers 08_04, Motu Economic and Public Policy Research.
  • Handle: RePEc:mtu:wpaper:08_04

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    Cited by:

    1. Zhang, Wei & Power, William & Kerr, Suzi, 2009. "Potential Scrub Changes and Its Spatial Allocation under the New Zealand Emission Trading System," 2009 Conference, August 16-22, 2009, Beijing, China 50896, International Association of Agricultural Economists.
    2. Eric Karpas & Suzi Kerr, 2011. "Preliminary Evidence on Responses to the New Zealand Forestry Emissions Trading Scheme," Working Papers 11_09, Motu Economic and Public Policy Research.
    3. Mario A. Fernandez & Adam J. Daigneault, 2018. "Money Does Grow On Trees: Impacts Of The Paris Agreement On The New Zealand Economy," Climate Change Economics (CCE), World Scientific Publishing Co. Pte. Ltd., vol. 9(03), pages 1-23, August.
    4. Millard-Ball, Adam, 2013. "The trouble with voluntary emissions trading: Uncertainty and adverse selection in sectoral crediting programs☆☆Special thanks to Suzi Kerr, Lawrence Goulder, Michael Wara, Arthur van Benthem, Lee Sch," Journal of Environmental Economics and Management, Elsevier, vol. 65(1), pages 40-55.
    5. Suzi Kerr, 2013. "Managing Risks and Tradeoffs Using Water Markets," Working Papers 13_13, Motu Economic and Public Policy Research.
    6. Ying Fan & Xu Wang, 2014. "Which Sectors Should Be Included in the Ets in the Context of a Unified Carbon Market in China?," Energy & Environment, , vol. 25(3-4), pages 613-634, April.
    7. Antonia Weishaupt & Felix Ekardt & Beatrice Garske & Jessica Stubenrauch & Jutta Wieding, 2020. "Land Use, Livestock, Quantity Governance, and Economic Instruments—Sustainability Beyond Big Livestock Herds and Fossil Fuels," Sustainability, MDPI, vol. 12(5), pages 1-27, March.

    More about this item


    Emissions trading; New Zealand; agriculture; public policy;
    All these keywords.

    JEL classification:

    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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