Impact on profitability, risk, optimum rotation age and afforestation of changing the New Zealand emissions trading scheme to an averaging approach

  title={Impact on profitability, risk, optimum rotation age and afforestation of changing the New Zealand emissions trading scheme to an averaging approach},
  author={Bruce Manley},
  journal={Forest Policy and Economics},
  • B. Manley
  • Published 2020
  • Economics
  • Forest Policy and Economics
Abstract The current New Zealand Emissions Trading Scheme (ETS) allows forest growers to earn units under the stock change approach. Carbon price risk means that most participants are only trading safe units that they do not need to surrender after harvest provided that they replant. Consequently, the ETS has provided less incentive for afforestation than had been envisaged. This paper evaluates averaging as an alternative approach to carbon accounting. Two variations are considered: averaging… Expand
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