Report for the Working Group on CO2 Policy

There are three basic questions for New Zealand CO2 policy.

1. How much New Zealand should regulate CO2 and the timing of regulation;
2. Whether New Zealand should use a tax system, a tradeable permit market or direct regulation;
3. How a tax or permit system should be designed.

This paper outlines very briefly most of the issues relevant to answering these questions and goes into more detail in a few areas where current analysis is less well developed.