Simon Johnson (Mr February) argues that the New Zealand Emissions Trading Scheme (NZETS) is “the weakest link” due to its high exposure to the international carbon market. The strong “international linkage” is the other side of the coin of the uncapped design of the NZETS. Both features reinforce just how ineffective the NZETS is in providing an incentive to reduce greenhouse gas emissions.
Who remembers the The Weakest Link? The quiz show with Anne Robinson the disciplinarian female host with the popular catchphrase “You are the weakest link. Goodbye!” Yes that’s today’s bonkers metaphor for another post on the NZETS. In addition to the observation that I would love to say “Goodbye!” to the ETS, there really is a relevant connection to the economics literature.
“Linking” of emissions trading schemes means that units from one ETS can be imported and surrendered by emitters regulated by a different ETS. There are papers and blog posts about international linkage. The key economic benefit claimed for linking two or more ETS, assuming that they are otherwise sensibly designed, is that the lowest-cost ways of reducing emissions within the linked schemes become available (via emissions trading) to the emitters of the linked schemes.
Continue reading “NZ ETS, you are the weakest (international) link”
This morning the Sydney Morning Herald published
The reign of climate change denial in the US Republican Party is an extraordinary spectacle, hard to credit in an educated modern democracy. It’s also a very sad spectacle in view of the prominent role the US plays in contributing to climate change and the potential leading role it could play in mitigating it. I often wonder what members of the party who take science seriously and understand climate change make of the phenomenon. A recent podcast interview with noted atmospheric scientist
“It has become a rogue industry, reckless like no other force on Earth. It is Public Enemy Number One to the survival of our planetary civilization.” These are the words Bill McKibben uses to describe the fossil-fuel industry in a recent
I have been listening to a lecture by Victoria University climate scientist, James Renwick, who has recently moved to the university from his post as principal climate scientist at NIWA. In the seminar he sets out in broad terms some of the latest developments in the science. It’s a very clear summation, with some recent interesting graphs and charts, showing the direction which in which climate change is continuing to move. Needless to say there’s no change in direction apparent. I recommend