10, Aug, 2009

Government Greenhouse target relies on misleading presentation of costs: New Zealanders will still be better off

Category: ECO Inc

The government is misleading people into thinking that they will be $30 on average worse off than they now with the greenhouse gas target when in fact they will still be much better off said the Environment and Conservation Organisations of NZ

The Infometrics and NZIER study of the costs of greenhouse gas emissions reductions was not always clear on the cost reference in the Executive Summary, but on Friday Adolf Stroombergen, in presenting the study at Victoria University made it very clear.

ECO Spokesperson, Cath Wallace said, what they really found is that in 2025, we will on average in New Zealand be $16,000 better off than we are now with emissions reduction; and $18,000 better off than now without – in the unlikely event that the rest of the world lets us getting away with shirking.

“Dr Smith is making people think they will be worse off in future if we take action on climate change, and that is not true. We will be markedly better off, either way, even with a price of carbon of $100 and a variety of assumptions run through a model.”

Adolf Stroombergen, in presenting his paper, gave the following figures for average Gross Disposable National Income:

“2009: $38,500 per capita
2025: $56,000 per capita
2025: ≈$54,000 per capita with $100/tonne CO2.”

“The models that Infometrics and NZIER used, have a number of flaws, incorporated no costs of climate change or of retaliatory action by other countries if New Zealand shirks its duty to cut emissions.”

“The 10-20% emissions reduction that Dr Smith and the government is well short of the UK binding emissions reduction target of 33%, and much less than the 25%-40% commitments made by developed countries in Bali.”

“Dr Smith is misleading people into thinking they will be $30 week worse off than they are now when in fact they will be very much better off.”

For further information, contact Cath Wallace 04-970-1696 or 021-891-994.


  1. ECO – the Environment and Conservation Organisations was established in 1972 and represents 66 groups with a concern for the environment.