Taxes vs permits: Options for price-based climate change regulation

Produced as New Zealand Treasury Working Paper 05/02

This paper provides an overview of key issues involved in the choice among market-based instruments for climate change policy. Specifically, it examines the potential net benefits from shifting to a permit system for emission reduction, and the preconditions necessary for this change. It also draws out the implications of New Zealand's specific circumstances and current climate policies for future policy development.