ETS logic - stranger than fiction
OPINION: Over the last two weeks we have seen a Bill pass through the house that removes the ETS backstop from agriculture emissions, and once again we heard some strange logic being presented.
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.
