Resource Economics

Economic analysis is a valuable tool in making decisions about environmental resource management issues. For example, economics can be used to:

• Predict the impact of different policy options on the wider economy.
• Identify the likely impact of proposals, including effects on economic activity and on the achievement of environmental objectives.
• Assess whether particular resource development options are worthwhile, through cost benefit analysis that allows for the differing timing of effects and outcomes from the different options.
• Provide objective measures for prioritising the use of limited resources.

We can:

• Forecast economic and environmental impacts of policy change.
• Help you to participate effectively, based on good information, in policy debates.
• Provide expert testimony in Resource Management Act applications on the economic and environmental impacts of a given proposal.

Recent examples

We prepared and presented evidence to the Environment Court with respect to consent applications and appeals on new developments involving atmospheric emissions and shifts to retail and transport patterns.

We reviewed energy supply and demand forecasts in support of decisions on new business development and location.

We advised clients on various aspects of costs and prices of transport services.

Throughout the consultation period on Kyoto ratification in 2001/02, and again later when the government announced its preferred package of climate change policies, NZIER used a computable general equilibrium model to analyse the various proposals. The results shed considerable light on the impact of different options on New Zealand as a whole, and on different sectors of the economy, and were a valuable contribution to the policy debate.