Recycle the ETS cash++ into emissions cuts here

The Kākā by Bernard Hickey · May 23, 2023 · 24m

TL;DR: The Ministry for the Environment (MfE) is looking at a ‘carbon dividend’ scheme that would recycle cash from the Emissions Trading Scheme (ETS) back into the pockets of consumers. That would be popular at a time when many are struggling with living costs, especially if it was done with a simple equal cash payout to residents.

But such a policy would also be inflationary and work against the emissions reductions aims of the ETS, given many consumers would buy more emissions-creating goods and services with the cash.

In my view, a much better alternative would be to recycle up-front an…