A report for the Ministry for the Environment.
We have estimated the impacts of the economy adjusting to 2050 greenhouse gas targets. We first project economic activity and greenhouse gas emissions out to 2050 using NZIER’s dynamic Computable General Equilibrium model. We then impose different emissions targets under a range of assumptions around innovation and afforestation. The results show that meeting ambitious emissions targets comes with significant economic costs, and demonstrate the trade-offs required to transition to a lower-emissions economy.
Read the report here.