1887

OECD Economics Department Working Papers

Working papers from the Economics Department of the OECD that cover the full range of the Department’s work including the economic situation, policy analysis and projections; fiscal policy, public expenditure and taxation; and structural issues including ageing, growth and productivity, migration, environment, human capital, housing, trade and investment, labour markets, regulatory reform, competition, health, and other issues.

The views expressed in these papers are those of the author(s) and do not necessarily reflect those of the OECD or of the governments of its member countries.

English, French

A fight on two fronts

Adapting to climate change and reducing GHG emissions in New Zealand

New Zealand, like other countries, needs to address climate change on two fronts simultaneously. Adapting to a hotter world while meeting its emissions reduction targets. New Zealand will need to become better prepared for more extreme weather that climate change will bring about. Councils will need new sources of revenue to fund the infrastructure that adaptation requires. Maintaining a comprehensive package of private insurance for climate-related losses with sharper premium price signals will also be essential. Developing a long-term energy strategy that weighs up all the main options for reducing emissions, while ensuring security of supply in a hotter world, is also crucial. New Zealand has made important strides to strengthen the policy framework for reducing GHG emissions. An important part of the framework is the New Zealand Emissions Trading Scheme (ETS). However, the ETS should be reviewed with a focus on the treatment of carbon removals through afforestation. New Zealand’s next overall emissions reduction plan should be underpinned by a rigorous and comprehensive cost-benefit comparison of the different emissions reduction options.

English

Keywords: mitigation, greenhouse gas emissions, climate change, adaptation, New Zealand
JEL: Q58: Agricultural and Natural Resource Economics; Environmental and Ecological Economics / Environmental Economics / Environmental Economics: Government Policy; R11: Urban, Rural, Regional, Real Estate, and Transportation Economics / General Regional Economics / Regional Economic Activity: Growth, Development, Environmental Issues, and Changes; Q50: Agricultural and Natural Resource Economics; Environmental and Ecological Economics / Environmental Economics / Environmental Economics: General; Q48: Agricultural and Natural Resource Economics; Environmental and Ecological Economics / Energy / Energy: Government Policy; Q54: Agricultural and Natural Resource Economics; Environmental and Ecological Economics / Environmental Economics / Climate; Natural Disasters and Their Management; Global Warming; O18: Economic Development, Innovation, Technological Change, and Growth / Economic Development / Economic Development: Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure; R14: Urban, Rural, Regional, Real Estate, and Transportation Economics / General Regional Economics / Land Use Patterns; R52: Urban, Rural, Regional, Real Estate, and Transportation Economics / Regional Government Analysis / Regional Government Analysis: Land Use and Other Regulations; Q23: Agricultural and Natural Resource Economics; Environmental and Ecological Economics / Renewable Resources and Conservation / Renewable Resources and Conservation: Forestry; Q28: Agricultural and Natural Resource Economics; Environmental and Ecological Economics / Renewable Resources and Conservation / Renewable Resources and Conservation: Government Policy; Q53: Agricultural and Natural Resource Economics; Environmental and Ecological Economics / Environmental Economics / Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling; Q16: Agricultural and Natural Resource Economics; Environmental and Ecological Economics / Agriculture / R&D; Agricultural Technology; Biofuels; Agricultural Extension Services; R12: Urban, Rural, Regional, Real Estate, and Transportation Economics / General Regional Economics / Size and Spatial Distributions of Regional Economic Activity; O13: Economic Development, Innovation, Technological Change, and Growth / Economic Development / Economic Development: Agriculture; Natural Resources; Energy; Environment; Other Primary Products; R48: Urban, Rural, Regional, Real Estate, and Transportation Economics / Transportation Economics / Transportation Economics: Government Pricing and Policy
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