28 April 2011

Who bears the biggest and smallest carbon price under the NZETS?

Who bears the biggest and smallest carbon price under the New Zealand Emissions Trading Scheme?

Geoff Bertram and Simon Terry in their book The Carbon Challenge New Zealands Emissions Trading Scheme, point out that the effect of the delayed entry dates for different sectors of the economy (agriculture) into the NZ ETS combined with 100% plus free gifting of NZ emission units to emitters, will be an unfair carbon price between sectors.

This chart shows who is and is not bearing their share of the carbon price imposed by the NZETS. The left hand end of each line represents the sectors share of New Zealands greenhouse gas emissions. The right hand end of each line represents the share of the carbon price each sector will bear under the NZ ETS in the period 2008 to 2012. This type of chart is a 'Bump' chart. It has been popularised by the blog Junk Charts.



Here is the R-programming language script for the chart.

ag<-c(48.4,3.2)
li<-c(14.8,1.2)
mv<-c(14.5,29)
ct<-c(4.2,9)
hh<-c(4.1,23.3)
yy<-c(2008,2009)
png(file="etsprice.png",pointsize = 14,width=650,height=550)
plot(yy,ag,type='n',axes=F,xlim=c(2008,2009.4),ylim=c(0,48),main="",xlab="", ylab="Percent of total")
axis(side=1, las=0,at=c(2008.3,2009), labels=c("share of greenhouse gases", "share of carbon price in NZETS"))
axis(side=2)
box(lwd=2)
lines(yy,ag,lwd=2,col="red")
text(2009.1,3.2,"Agriculture",adj=0,col=1)
lines(yy,li,lwd=2,col="red1")
text(2009.1,1,"Large industry",adj=0,col=1)
lines(yy,mv,lwd=2,col="blue")
text(2009.1,29,"Private vehicles",adj=0,col=1)
lines(yy,ct,lwd=2,col="blue1")
text(2009.1,9,"Transport",adj=0,col=1)
lines(yy,hh,lwd=2,col="violetred")
text(2009.1,23.3,"Households",adj=0,col=1)
mtext(side=3,line=-2.8,cex=1.3,"Sectoral shares of NZ greenhouse gases \nvs share of carbon price under NZETS")
dev.off()

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