@article{Sharp:330188,
      recid = {330188},
      author = {Sharp, Basil and Poletti, Stephen and Nam, Kyung-Min and  Wang, Yue},
      title = {Analysing the impacts of the net zero-emission policy on  New Zealand’s carbon trading and land use},
      address = {2019},
      pages = {19},
      year = {2019},
      note = {Presented at the 22nd Annual Conference on Global Economic  Analysis, Warsaw, Poland},
      abstract = {In this paper, we investigate the impact of net  zero-emission policy on New Zealand’s macroeconomy,  including carbon permit pricing and land use change under  two scenarios. Both scenarios base on domestic forestry  being the only source of permits and assume net zero  emission. One scenario includes agriculture whereas another  excludes this domestic largest emission contributor. We  developed an integrated model, forest-CGE, to derive an  equilibrium carbon permit price subject to an endogenous  forest rotation age. Various mechanism of carbon permit  allocation is also considered. Our results estimate an  equilibrium carbon permit price of NZ$81 and NZ$74 per  tonne carbon dioxide equivalent in each scenario  respectively to meet the zero net emission target by 2050.  Also, it shows that the New Zealand Emissions Trading  Scheme with agriculture included contributes to a 14%  reduction in the nation’s total emissions, approximately  half of New Zealand’s 2030 goal. The forestry sector  increases by 75% and 57% of land use coming from other  sectors in each scenario. The GDP declines due to reduced  production in most sectors with emerging emission cost,  leading to decreased exports. Household income is  negatively affected by decreased factor price but  compensated by providing renewable resources. Whether  including agriculture in the existing emissions trading  scheme generates a different impact on the macro-economy.   Key words: carbon price, land use, CGE, NZ ETS, and  forestry.  JEL classification: Q23; Q24; Q54; Q68},
      url = {http://ageconsearch.umn.edu/record/330188},
}