Wednesday, 27 November 2024 12:25

Carbon tax

Written by Milking It

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OPINION: A group of University of Auckland academics claim a carbon tax is the most effective way for New Zealand to cut emissions while supporting a stable economy.

The follows a study comparing the effects of three environmental policies: carbon taxes, emissions trading schemes and emission intensity targets on the economy. It also explores environmental impacts on the economy by factoring in how pollution spreads across regions. They admit that carbon taxation may increase the cost of living, particularly by increasing food, transportation and energy prices. Relying on the ETS for emissions reduction is ineffective in terms of meeting NZ’s environmental goals, and agricultural emissions pose a considerable challenge, they say.

No right-minded Government would back a carbon tax that causes more pain than gain, especially for the agriculture sector that remains the backbone of the national economy.

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