The New Zealand government's proposed emissions trading scheme could cost 22,000 jobs, according to a report released by the New Zealand Institute of Economic Research on Wednesday.
The institute said that by 2012 the scheme would reduce gross domestic product by 800 million NZ dollars (626 million U.S. dollars) and reduce employment by 22,000 jobs.
By 2025, there would be a 4.6 billion NZ dollars cut in gross domestic product, and an average reduction in wages of 6.7 percent.
But it said emissions would not be cut significantly, and a quarter of the emissions cuts that were achieved would come from companies leaving New Zealand and doing business offshore.
The lead researcher for the report, John Stephenson, said the cost would be especially harsh on the dairy sector, Radio New Zealand reported.
He said dairy farming would fall by 13 percent, dairy land prices would drop by 40 percent, and sheep and beef farming land will fall by 23.4 percent in price.
The NZIER said New Zealand would be better off buying credits from overseas rather than trying to make savings here through emissions trading.
The proposed emissions trading scheme, which is going through a parliamentary select committee process, would allow emissions at a set level and require companies exceeding that level to pay for them.
Source: Xinhua
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