New Zealand may go bust over Global Warming

“No country in the world would risk as much for “global warming” as New Zealand if it goes ahead with the cap-and-trade energy taxation installed by Helen Clarke’s now-departed Labour Government.

New Zealand’s economy is almost completely dependent on its farm exports: lamb, dairy products, beef and high-end white wines. Half of New Zealand’s carbon emissions come from cattle and sheep. If New Zealand taxes its cows and sheep hundreds of dollars per animal for methane emissions and manure handling fees, Argentina would almost immediately displace New Zealand’s farm exports. Argentina has more grass, more cattle, the potential for more lambs, a surging wine industry—and no Kyoto obligations.

Based on U.S. and Australian “discussions,” a 500-cow dairy might have to pay $250,000 per year for cattle emissions and manure handling permits, plus a hefty increase in its costs for low-carbon electricity and diesel. An Argentine dairy would pay none of these increased costs—and every dollar of cost differential would be a further incentive for Argentine dairymen to expand their exports at the expense of New Zealand. That would leave Kiwi cities like Auckland and Christchurch without visible means of support.”