The Role of Fundamentals and Policy in New Zealand’s Carbon Prices
|dc.identifier.citation||Liao, L. (2021). The Role of Fundamentals and Policy in New Zealand’s Carbon Prices (Thesis, Master of Commerce). University of Otago. Retrieved from http://hdl.handle.net/10523/10739||en|
|dc.description.abstract||New Zealand’s Ministry for the Environment (MfE) explicitly recognizes that the New Zealand Units (NZUs) price is set by a flexible unlimited supply of units, as well as demand for units. This thesis explores NZU pricing dynamics driven by the interaction between allowances supply and demand. The empirical results highlight that, firstly, there are two policy associated structural breakpoints in NZU returns over the period of July 1st, 2010- December 31st, 2019. Specifically, in 2013 following a large ban on international units with low environmental integrity and in 2016 following the announcement of a gradual phasing-out one for two ‘transitional’ measure. Secondly, increased carbon activities from the manufacturing and transportation sectors tend to increase NZU prices, while activities from the stationary energy sector put downward pressure on NZU prices. This may be explained by the large stockpile (bank) of unit held by stationary energy sector. Lastly and as expected, the results show that banking and net import negatively affect NZU returns, however, carbon removal entitlements surprisingly positively affect NZU returns.|
|dc.publisher||University of Otago|
|dc.rights||All items in OUR Archive are provided for private study and research purposes and are protected by copyright with all rights reserved unless otherwise indicated.|
|dc.subject||New Zealand Emissions Trading Scheme, Carbon price, Banking, Economic activity, Policy effects, VAR|
|dc.title||The Role of Fundamentals and Policy in New Zealand’s Carbon Prices|
|thesis.degree.discipline||Accountancy and Finance|
|thesis.degree.name||Master of Commerce|
|thesis.degree.grantor||University of Otago|
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