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New Paper On A Framework For Assessing The Economic And Fiscal Impacts Of Climate Change

The Treasury has published today a new Analytical Note co-authored by Melanie Craxton, Bettina Schaer, Tim Maddock and Carly Soo, Assessing the economic and fiscal impacts of climate change in New Zealand: a new framework to support deeper understanding.

More fully understanding the impacts of climate change to New Zealand is a critical step in evaluating the potential threats or opportunities posed to New Zealanders’ living standards. Ngā Kōrero Āhaurangi Me Te Ōhanga | Climate Economic and Fiscal Assessment 2023 (CEFA), a joint report by the Treasury and the Ministry for the Environment, contributed to this task by collecting, organising and providing information on the economic and fiscal impacts of climate change to New Zealand, and setting out a framework for assessing these impacts. This paper presents the framework as published in the CEFA and explains the channels and feedback loops through which climate change impacts the economy and fiscal position. It also identifies areas the authors view to be particularly valuable for additional work not only for the Treasury, but for the wider domestic and international community contributing to furthering our understanding of the impacts of climate change.

Disclaimer: The views, opinions, findings, and conclusions or recommendations expressed in this paper are strictly those of the authors. They do not necessarily reflect the views of the New Zealand Treasury or the New Zealand Government. The New Zealand Treasury and the New Zealand Government take no responsibility for any errors or omissions in, or for the correctness of, the information contained in papers and articles.

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