Inclusion of Agriculture and Forestry in a Domestic Emissions Trading Scheme: New Zealand's Experience to Date

No country has previously attempted to include either agriculture or forestry in an emissions trading system. The New Zealand government is planning to include both. This paper describes how they plan to do it, what some of the critical issues have been and some of the outstanding challenges. If New Zealand can resolve these issues and so can create a strong system, this could create a precedent for many others. Policy development is actively progressing as this paper is written. This paper does not definitively cover the issues but records our thinking at a moment in time and provides a framework for more in-depth analysis.Emissions trading, New Zealand, agriculture, public policy

Land Taxes and Revenue Needs as Communities Grow and Decline: Evidence from New Zealand

New Zealand is unusual in that nearly 60% of local services are funded from property taxes. These are a mixture of land taxes, capital value taxes, annual rental value taxes and uniform general charges. We explore the efficiency and equity of this system at both national and local levels. We find that the national property tax base is large relative to spending needs but that the variance in per capita tax bases across territorial local authorities is probably greater than is efficient or equitable. We find that land taxes are more progressive than capital value taxes. Our research also addresses local authorities' ability to provide services as their property tax base changes as a result of external economic shocks. We consider the occurrence of and responses to "fiscal stress" in a system of local government that is heavily dependent on property taxation. We provide some examples of the wide range of actual responses by local councils faced with similar population changes. Finally, we offer some tentative conclusions and implications both for New Zealand local public finance and for the use of property taxes, and particularly land taxes, more broadly.New Zealand, local government, property taxes, land taxes

House Price Efficiency: Expectations, Sales, Symmetry

An efficient housing market is of critical importance for individual welfare and for a well-functioning economy. We test the efficiency of this market by estimating the factors that determine both the long-run and the dynamic paths of regional house prices. Our tests use a new quarterly regional panel data set covering the 14 regions of New Zealand from 1981 to 2002. The tests indicate that regional housing markets converge to an equilibrium consistent with consumer optimising conditions, and hence with long-run efficiency. However, some conditions required for short-run (dynamic) efficiency are violated. We find that extrapolative price expectations, based on past regional phenomena, lead to overshooting of house prices in response to new region-specific information. We also find that price dynamics are influenced by past regional house sales activity and that the dynamic adjustment process is asymmetric depending on whether house prices are above or below their long-run equilibrium.House prices; housing appreciation; housing market; adjustment dynamics

Housing and Economic Adjustment

Housing is the most important component of wealth for many New Zealanders. Its location is fixed and its value is influenced by economic and other factors specific to that location. Hence when people live in owner-occupied homes their wealth is strongly associated with their local economic conditions. Housing is also a major factor in influencing migration decisions and, hence, regional mobility. To shed light on the behaviour of the New Zealand housing market, we examine the dynamic and long run responses of house values across spatial communities and across time to economic variables that impact on the local economy. We use a specially constructed QVNZ-sourced database for house prices and house sales, and a range of explanatory variables constructed consistently across TLA and Regional Council levels.

Land Taxes and Revenue Needs as Communities Grow and Decline: Evidence from New Zealand

An efficient housing market is of critical importance for individual welfare and for a well-functioning economy. We test the efficiency of this market by estimating the factors that determine both the long-run and the dynamic paths of regional house prices. Our tests use a new quarterly regional panel data set covering the 14 regions of New Zealand from 1981 to 2002. The tests indicate that regional housing markets converge to an equilibrium consistent with consumer optimising conditions, and hence with long-run efficiency. However, some conditions required for short-run (dynamic) efficiency are violated. We find that extrapolative price expectations, based on past regional phenomena, lead to overshooting of house prices in response to new region-specific information. We also find that price dynamics are influenced by past regional house sales activity and that the dynamic adjustment process is asymmetric depending on whether house prices are above or below their long-run equilibrium.House prices; housing appreciation; housing market; adjustment dynamics

Housing and Economic Adjustment

Housing is the most important component of wealth for many New Zealanders. Its location is fixed and its value is influenced by economic and other factors specific to that location. Hence when people live in owner-occupied homes their wealth is strongly associated with their local economic conditions. Housing is also a major factor in influencing migration decisions and, hence, regional mobility. To shed light on the behaviour of the New Zealand housing market, we examine the dynamic and long run responses of house values across spatial communities and across time to economic variables that impact on the local economy. We use a specially constructed QVNZ-sourced database for house prices and house sales, and a range of explanatory variables constructed consistently across TLA and Regional Council levels.economic adjustment, housing, New Zealand

Land Taxes and Revenue Needs as Communities Grow and

New Zealand is unusual in that nearly 60% of local services are funded from property taxes. These are a mixture of land taxes, capital value taxes, annual rental value taxes and uniform general charges. We explore the efficiency and equity of this system at both national and local levels. We find that the national property tax base is large relative to spending needs but that the variance in per capita tax bases across territorial local authorities is probably greater than is efficient or equitable. We find that land taxes are more progressive than capital value taxes. Our research also addresses local authorities’ ability to provide services as their property tax base changes as a result of external economic shocks. We consider the occurrence of and responses to “fiscal stress” in a system of local government that is heavily dependent on property taxation. We provide some examples of the wide range of actual responses by local councils faced with similar population changes. Finally, we offer some tentative conclusions and implications both for New Zealand local public finance and for the use of property taxes, and particularly land taxes, more broadly.New Zealand, local government, property taxes, land taxes

Bi-Directions Impacts of Economic, Social and Environmental Changes and the New Zealand Housing Market

This report was prepared for the Centre for Housing Research Aotearoa New Zealand (CHRANZ). The aim of this study is to identify a set of housing research projects addressing two related topics. First, the impact of economic, social and environmental changes on housing in New Zealand's non-metropolitan regions; and second, the economic, social and environmental impacts of the New Zealand housing market. Identification of these projects is designed to help CHRANZ in developing and prioritising its research agenda pertaining to policy-relevant housing research within New Zealand. By doing so, we aim to outline coherent programmes of research that develop a comprehensive body of knowledge about the housing sector and its interactions with other key elements of society. The study suggests a set of research questions leading to coherent programmes of research, rather than to answer the research questions. We concentrate on posing questions that are of policy concern. Some are matters of current official policy concern. Others relate to issues that non-official sources consider should be of policy concern or which we judge may become of official concern in future years. Thus our analysis is informed by current policy priorities, but seeks to take a strategic look also at forthcoming priorities that may emerge over the next five years.Housing markets, Housing policy

Session C2: Eel Recovery – It is not Just About Fishing

Abstract: The background to this topic is the most recent report on implementation of the eel management plans from the European Commission to the Parliament 24th October 2014. Whilst there are several messages particularly on the difficulties of stock measurement and incomplete reporting the most powerful in order to achieve and maintain the recovery are on the importance of unblocking the migration pathways both in and out. Here are just three key statements from the report. “Progress was made in implementing management measure related to fisheries but that other management measures, such as improving habitats, combating parasites or predator control have often been postponed or only partially implemented.” “More attention should be given to management measures related to these non-fishing anthropogenic mortality factors, the majority of which has only partially been implemented by Member States.” “Non-fishing anthropogenic mortality factors include hydropower and pumping stations, habitat loss or degradation, pollution, diseases and parasites.” The paper presented would concentrate on the positive and seek to find and then tell the story of where migration pathways have been addressed and provide evidence of the difference these are making. Some evidence has already been collected for the last SEG Newsletter attached. Entry Examples will be drawn from: (1) the Mediterranean on the Camargue (2) The Bay of Biscay the Arzal Dan on the Vilaine (3) The UK West and East Coasts. Exit Examples will be drawn from Sweden. Willem Dekker’s Paper (am requesting) it says that mortalities in Sweden from Hydro are greater than fishing Mortality of European eel after downstream migration through two types of pumping stations D. Buysse*, A. M. Mouton, M. Stevens, T. Van den Neucker and J. Coeck. Article first published online: 27 AUG 2013. DOI: 10.1111/fme.12046. © 2013 John Wiley & Sons Ltd An example from a country which has now brought legislation into force will be England and Wales. The Statutory Instrument of 2009 comes into effect in stages – one of which is to compel owner of obstructions which are of high risk to screen them from January 2015. OFWAT the regulator for the Water Industry has just agreed an expenditure of £70m over the next five years to support this work. The presentation would conclude that restocking and translocation can help as an emergency measure but that the only lasting and therefore truly sustainable solution is through opening the Migration pathways