Changes in the cap affect emissions and prices. With tool, knowledge blooms.
The New Zealand Emissions Trading Scheme (NZ ETS) Cap Explorer tool was created to help individuals understand how NZ ETS design features and drivers of greenhouse gas (GHG) emissions could influence domestic emissions, emission price, and fiscal outcomes. In this Note, we discuss how the tool works, share some insights from using the tool, and detail the tool’s key assumptions and limitations.
This tool uses data derived from modelling of hypothetical scenarios which do not align with current government targets or policies. It is intended to be educational, and its outputs should not be interpreted as predictions or recommendations for future emission levels, emission prices, or fiscal impacts under the NZ ETS.
Badenhorst, Shaan, Sophie Hale, Catherine Leining and Suzi Kerr. 2019. "The NZ ETS Cap Explorer Tool: design and key insights." Motu Note #41. Motu Economic and Public Policy Research. Wellington, New Zealand.