| Removing the current subsidy for heavy emitters of greenhouse gases from the emissions trading scheme would impose "a small cost on the economy as a whole" and would be more heavily borne by the agricultural and extractive sectors, and lower income households, according to analysis by the New Zealand Institute of Economic Research.
Released yesterday as an input to the ETS review by Climate Change Minister Paula Bennett, the NZIER paper says if carbon was trading at $50 a tonne -- in a so-called "high price" scenario -- it would reduce total economic growth by around 0.2 per cent a year for a 1.1 per cent reduction in gross greenhouse gas (GHG) emissions...............................................Full Article: Source
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