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 Zealandcoincide with the recent announcement by the government of a new carbon tax and a new energy tax tobe introduced before the first phase of the Kyoto protocol. This paper provides preliminary simulationresults that may help answer some policy-related questions including the relative micro- and macrolevelimpacts of energy taxes or carbon taxes and the likely impacts of the carbon taxes on thecompetitiveness of energy intensive industries.