New Zealand’s Emissions Trading Scheme includes industrial allocations of carbon credits aimed at avoiding inefficient carbon leakage.But the formula is wrong. Imagine that you’re a domestic firm producing stuff that generates CO2 emissions. You correctly have to surrender NZU – one for each tonne of emissions. But if competitors in foreign markets do not face a…
Just fix industrial allocations
Just fix industrial allocations
25 Jul 2026 Leave a comment
in economics of climate change, economics of regulation, energy economics, environmental economics, environmentalism, global warming, politics - New Zealand Tags: carbon tax, carbon trading
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