Show simple item record

dc.contributor.advisorDiaz-Rainey, Ivan
dc.contributor.advisorGehricke, Sebastian
dc.contributor.authorLiao, Ling
dc.identifier.citationLiao, L. (2021). The Role of Fundamentals and Policy in New Zealand’s Carbon Prices (Thesis, Master of Commerce). University of Otago. Retrieved from
dc.description.abstractNew 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.publisherUniversity of Otago
dc.rightsAll 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.subjectNew Zealand Emissions Trading Scheme, Carbon price, Banking, Economic activity, Policy effects, VAR
dc.titleThe Role of Fundamentals and Policy in New Zealand’s Carbon Prices
dc.language.rfc3066en and Finance of Commerce of Otago
otago.openaccessAbstract Only
 Find in your library

Files in this item


There are no files associated with this item.

This item is not available in full-text via OUR Archive.

If you are the author of this item, please contact us if you wish to discuss making the full text publicly available.

This item appears in the following Collection(s)

Show simple item record