Reducing carbon emissions? The relative effectiveness of different types of environmental tax: the case of New Zealand

Although countries experiences on environmental taxation differ, discussions in New Zealand coincide with the recent announcement by the government of a new carbon tax and a new energy tax to be introduced before the first phase of the Kyoto protocol. This paper provides preliminary simulation results that may help answer some policy-related questions including the relative microand macrolevel impacts of energy taxes or carbon taxes and the likely impacts of the carbon taxes on the competitiveness of energy intensive industries.