I have to admit that I enjoy reading Brian Fallow’s economics articles in the Herald. His clear and concise writing about economic issues provides a public service to New Zealand.
His recent article describes what the Emissions trading scheme will do to the economy. The money quote for me is:
By ratifying the Kyoto Protocol in 2002, New Zealand took responsibility for its share of global greenhouse gas emissions. What the ETS does is devolve that responsibility from taxpayers to the firms and individuals whose decisions ultimately determine how large those emissions are.
Exactly! It is not the ETS that creates the costs we are going to face – it is the ratification of the Kyoto protocol.
Other posts that mention the article (Frog Blog – although I would ignore their Rod Oram style discussion on the “opportunities” 🙂 )