NZIER INSIGHT 95-2021 - Tourism recovery – without stepping on the gas

Of the 82 million tonnes of total emissions plus emissions of residents CO2-e emitted by production in New Zealand in operating overseas and minus emissions of non- 2018, 64% were embedded in exports, but the residents emitting in New Zealand. [...] Having removed production-based assessment of emissions due to consumption by emissions in New Zealand incurred to meet New Zealand residents in New Zealand (depicted in consumption demands from overseas, the black), comprising the Production-based total plus consumption-based assessment is the closest emissions embodied in imports and minus estimate of the emissions of New Zealanders’ emissions e. [...] But the its share of GDP… different approaches to measuring emission impacts have implications for the design of policy, Hosting foreign tourists is an export industry for the costs and consequences of implementing it, and New Zealand, but unlike other exports the target conclusions about ”fair shares” in reducing market comes to New Zealand and ‘the goods’ are emissions. [...] Even though those wide scale vaccination to allow borders to reopen exemptions are now being phased out, the ETS price without isolation and quarantine requirements and does not reflect the full cost of carbon emissions - without the risk of new border closures at short the contribution of each tonne of emissions to notice if infections emerge within the community. [...] Zealand Transport Agency in 2016 adopted a value A stronger price signal would come from applying a of emissions reduction of $64/tCO2-e in 2016-dollar full cost of carbon emissions to international flight terms, well above the ETS price, in recognition that fares at similar rates to emissions in the domestic the social cost may be higher.