tag:theconversation.com,2011:/nz/articlesThe Conversation – Articles (NZ)2022-03-24T03:14:37Ztag:theconversation.com,2011:article/1791902022-03-24T03:14:37Z2022-03-24T03:14:37ZNo silver lining for climate change: pain at the petrol pump will do little to get us out of our cars<figure><img src="https://images.theconversation.com/files/453986/original/file-20220323-21-1k5859h.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">GettyImages</span> </figcaption></figure><p>As global petrol prices skyrocket and governments step in to reduce the cost, is there a point when car owners will say enough is enough and opt for a different kind of transport? If history is anything to go by, probably not.</p>
<p>Over the past few weeks, New Zealand drivers received a nasty shock as the price of fuel rose to over NZ$3 a litre, before dropping back to around $2.60 after the government temporarily <a href="https://www.stuff.co.nz/national/politics/300540764/government-cuts-fuel-taxes-by-25c-and-halves-public-transport-fares-for-three-months">cut fuel taxes by 25 cents</a> a litre and the market eased. In Australia, the government has promised to implement some form of <a href="https://www.theguardian.com/australia-news/2022/mar/21/scott-morrison-signals-budget-measures-to-counter-soaring-petrol-prices-and-cost-of-living">cost cutting measures</a> in the upcoming budget. </p>
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<p>Despite these temporary actions, <a href="https://www.nzherald.co.nz/business/aa-says-petrol-to-likely-reach-4-litre-as-car-queues-stretch-at-nz-stations/7WESH4J5365IMZKPO7IEP2PGBA/">greater price volatility</a> has been predicted. And there is no doubt fuel prices are on the community’s radar. But will rising fuel prices change behaviour? Unfortunately, the available data doesn’t tell us much. </p>
<h2>Pain at the pump doesn’t change behaviour</h2>
<p>Fuel prices change on a weekly or daily basis and are reported over the same time frame, while robust fuel consumption statistics are only publicly available for longer time periods. </p>
<p>This makes consumer reaction to sudden price hikes hard to study, unless the price hike is a long-term trend rather than a short-term spike. It’s not yet clear which of these two scenarios is confronting motorists today. </p>
<figure class="align-center ">
<img alt="black and white image of a petrol pump with a closed sign" src="https://images.theconversation.com/files/453989/original/file-20220323-16499-krdu5o.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/453989/original/file-20220323-16499-krdu5o.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=595&fit=crop&dpr=1 600w, https://images.theconversation.com/files/453989/original/file-20220323-16499-krdu5o.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=595&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/453989/original/file-20220323-16499-krdu5o.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=595&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/453989/original/file-20220323-16499-krdu5o.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=748&fit=crop&dpr=1 754w, https://images.theconversation.com/files/453989/original/file-20220323-16499-krdu5o.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=748&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/453989/original/file-20220323-16499-krdu5o.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=748&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
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<span class="caption">During the 1973 oil crisis, prices skyrocketed and supplies of fuel were limited.</span>
<span class="attribution"><a class="source" href="https://www.gettyimages.com.au/detail/news-photo/superblend-petrol-pump-with-a-closed-sign-on-it-at-a-garage-news-photo/1313295139?adppopup=true">Evening Standard/Getty Images</a></span>
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<p>Therefore, in order to study consumer reaction to a long-term rise in fuel prices, one has to go back to the <a href="https://www.stuff.co.nz/motoring/115929541/friday-flashback-remember-the-oil-crisis-and-carless-days">oil crisis of 1973</a> when oil prices abruptly quadrupled and stayed that way for more than a year. </p>
<p>So, what do motorists do when they are confronted with a massive and sustained increase in petrol prices? As seen during the 1973 crisis and beyond, the consistent answer to this question is “not much”. </p>
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<p>In the decades after the oil crisis, the number of cars in New Zealand continued to rise and the country is now ranked fourth in the OECD for <a href="https://www.newsroom.co.nz/whos-to-blame-for-the-energy-crisis">car ownership</a>. </p>
<p>While some reduction occurs over the longer term, petrol consumption appears to be “inelastic” to price changes. In economic parlance, <a href="https://hbr.org/2015/08/a-refresher-on-price-elasticity">an inelastic good</a> is one where price does not significantly affect demand because there are either few good alternatives, as with petrol and tobacco, or the product is necessary, such as medicines.</p>
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<img alt="People line up to get on a green bus" src="https://images.theconversation.com/files/453990/original/file-20220323-15-jzpsxw.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/453990/original/file-20220323-15-jzpsxw.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/453990/original/file-20220323-15-jzpsxw.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/453990/original/file-20220323-15-jzpsxw.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/453990/original/file-20220323-15-jzpsxw.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/453990/original/file-20220323-15-jzpsxw.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/453990/original/file-20220323-15-jzpsxw.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
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<span class="caption">The decision to use public transport in New Zealand is influenced by multiple factors, including convenience and speed.</span>
<span class="attribution"><a class="source" href="https://www.gettyimages.com.au/detail/news-photo/women-in-face-masks-board-a-bus-in-central-wellington-on-31-news-photo/1270138995?adppopup=true">Lynn Grieveson/Getty Images</a></span>
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<h2>A complex market driven by petrol</h2>
<p>That said, the general trends in fuel consumption disguise numerous complexities within the market. </p>
<p>Petrol consumers range from millionaire Porsche drivers getting away to their holiday home, to contract cleaners proceeding to their next gig in a rusty Nissan Micra on its last legs. </p>
<p>A <a href="https://scholar.princeton.edu/sites/default/files/maguiar/files/h2m.pdf">US study</a> in 2019 divided this range of households into two groups to study their behaviour separately: “hand to mouth” and “non-hand to mouth” consumers.</p>
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<p>Hand-to-mouth households do not reduce fuel consumption because they are simply not able to do so. Their petrol consumption is already reduced to non-discretionary use only, which is usually related to work, and this expenditure cannot be reduced without also reducing income. </p>
<p>Often the “gig” work that such households rely on is inflexible and not public transport friendly. Buying an electric vehicle (EV) in such circumstances is a fiscal impossibility.</p>
<p>Non-hand-to-mouth households do not reduce their expenditure on fuel because it supports activities and benefits that are usually of far higher value than the additional cost imposed by a rise in fuel prices.</p>
<h2>Cheap public transport is not a perfect solution</h2>
<p>For example, I commute 15km to work each day. This might use about three litres of fuel (I’m not really sure, which is a comment in itself). A rise from $2 to $3 increases my fuel cost from $6 to $9 a day. The cost of public transport for this return trip has gone <a href="https://www.1news.co.nz/2022/03/22/government-confirms-transport-subsidies-package">down from $6 to $3</a>. </p>
<p>I could therefore use public transport, which will save me $6 a day. However, a round trip in a car takes 40 minutes, while a public transport round trip takes over three hours. How much does one value two hours and twenty minutes a day? </p>
<p>Even at the minimum wage, it’s worth around $50 to me, which means fuel might well have to rise to more than $15 a litre to get me out of the car. </p>
<p>This analysis and logic can be applied in varying forms to almost any non-hand-to-mouth household. A 2007 government-funded study found public transport usage in New Zealand was influenced less by <a href="https://www.nzta.govt.nz/assets/resources/research/reports/357/docs/357.pdf">price than other factors</a>.</p>
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Read more:
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<p>Given this, it’s a fairly safe bet that increasing fuel costs will not significantly reduce consumption and oil companies are unlikely to face significant consumer backlash. </p>
<p>Instead, household resources will be redirected away from elastic costs, such as food, to pay for the increased cost of fuel. Upmarket cafes that serve the non-hand-to-mouth households may feel a slight chill as a red line is reluctantly drawn through the daily afternoon latte.</p>
<p>However, the food banks that already support hand-to-mouth households are likely to see a far more drastic effect as they are called on to bridge the increasingly unbridgeable gap between non-discretionary expenditure and minimum income within these stressed communities.</p>
<p>It’s a crisis, whatever the prime minister might say.</p><img src="https://counter.theconversation.com/content/179190/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Robert Hamlin does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>Petrol prices have spiked, forcing governments to step in to reduce costs. But will the rising prices actually force drivers out of their cars, reducing consumption and carbon emissions?Robert Hamlin, Senior Lecturer in Marketing , University of OtagoLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1794672022-03-20T20:56:55Z2022-03-20T20:56:55ZWhy has New Zealand welcomed Ukrainians fleeing war and not others trying to do the same?<figure><img src="https://images.theconversation.com/files/452969/original/file-20220318-36080-1xdo6k.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">GettyImages</span> </figcaption></figure><p>An estimated three million people have fled Ukraine in the last three weeks, triggering an extraordinary response from governments around the world, including New Zealand. But the question begs to be asked – why have Ukrainians been welcomed when others fleeing violence have not?</p>
<p>The New Zealand government’s announcement to <a href="https://www.beehive.govt.nz/release/government-offers-shelter-around-4000-family-members-ukrainians-nz">grant temporary protection</a> to 4,000 Ukrainians who are family members of people already living here is welcome. It will provide a sense of relief knowing that there is a short-term solution to provide safety and security in a situation that has quickly spiralled out of control. </p>
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<p>Of course, Ukrainians need to get somewhere safe, and we know there needs to be an international response to ensure neighbouring countries keep their borders open. Let’s face it, they’re not countries that usually welcome refugees and asylum seekers. </p>
<h2>A Eurocentric approach</h2>
<p>But there’s something very Eurocentric in this response, starting within the borders of Ukraine itself. In the early stages of the Russian invasion there were numerous reports of people from African, Asian, Middle Eastern and Caribbean nations being <a href="https://www.theguardian.com/world/2022/feb/28/nigeria-condemns-treatment-africans-trying-to-flee-ukraine-government-poland-discrimination">refused passage</a> through the checkpoints leading up to the border to Poland and then being refused admission when they finally reached the crossings. </p>
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<img alt="Woman and small child on train say goodbye to man." src="https://images.theconversation.com/files/452971/original/file-20220318-25-8zy9md.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/452971/original/file-20220318-25-8zy9md.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/452971/original/file-20220318-25-8zy9md.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/452971/original/file-20220318-25-8zy9md.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/452971/original/file-20220318-25-8zy9md.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/452971/original/file-20220318-25-8zy9md.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/452971/original/file-20220318-25-8zy9md.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
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<span class="caption">Since the start of Russian military operations in Ukraine on February 24th, more than 2.6 million civilians have been displaced into neighbouring countries.</span>
<span class="attribution"><a class="source" href="https://www.gettyimages.com.au/detail/news-photo/ukrainian-displaced-civilians-wait-in-the-train-station-as-news-photo/1239262225?adppopup=true">Narciso Contreras/Getty Images</a></span>
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<p>We can see similar dynamics playing out across Europe and other Western nations. The outpouring of support and even opening of people’s homes is being witnessed at a scope and scale not seen during the height of the so called <a href="https://www.unhcr.org/news/stories/2015/12/56ec1ebde/2015-year-europes-refugee-crisis.html">‘European refugee crisis’</a> in 2015 as hundreds of thousands of equally desperate people made their way across land borders and the Mediterranean to escape persecution following the Syrian civil war. </p>
<p>There were notable exceptions at the time, but the Ukrainian situation has very different political overtones and public receptivity.</p>
<p>This concerning trend is not just about protecting those “like us” but also about keeping the “other” out. Thus, the label of Eurocentrism is not strong enough. This trend highlights how racism often operates in implicit and, at times, explicit ways. </p>
<h2>A quick response is possible</h2>
<p>The New Zealand government’s announcement regarding the Ukrainians fleeing their homes shows that we can act relatively quickly to humanitarian crises. However, the current response is disproportionate to recent conflicts in other parts of the world. </p>
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Read more:
<a href="https://theconversation.com/as-the-talibans-grip-on-afghanistan-tightens-new-zealand-must-commit-to-taking-more-refugees-166411">As the Taliban's grip on Afghanistan tightens, New Zealand must commit to taking more refugees</a>
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<p>According to the 2018 Census, 1,281 Ukrainians are living in New Zealand. There are also 1,635 Ethiopians residing here. Why wasn’t such a scheme developed when the <a href="https://www.theguardian.com/global-development/2022/mar/17/nowhere-on-earth-are-people-more-at-risk-than-tigray-says-who-chief">conflict in Tigray escalated into war</a> in late 2020? An estimated half a million people have died in the region from protracted conflict, famine and lack of health care, and two million have been forcibly displaced. </p>
<p>As the Taliban stormed into Kabul with breathtaking speed, I watched Afghan friends and colleagues despair as they saw very limited options to support those who were directly targeted. </p>
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<img alt="protestors in yellow and red hold signs." src="https://images.theconversation.com/files/452972/original/file-20220318-13-16p2t3t.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/452972/original/file-20220318-13-16p2t3t.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/452972/original/file-20220318-13-16p2t3t.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/452972/original/file-20220318-13-16p2t3t.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/452972/original/file-20220318-13-16p2t3t.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/452972/original/file-20220318-13-16p2t3t.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/452972/original/file-20220318-13-16p2t3t.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
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<span class="caption">Demonstrators gathered around the world in protest against what they call a ‘genocidal war’ by Ethiopia and Eritrea on the region of Tigray, and called on the international community to help the people of the East African region.</span>
<span class="attribution"><a class="source" href="https://www.gettyimages.com.au/detail/news-photo/protester-holds-a-placard-comparing-the-situation-in-tigray-news-photo/1235984222?adppopup=true">Photo by Vuk Valcic/Getty Images</a></span>
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<p>The New Zealand Government did finally respond by introducing Critical Purpose Visa. According to the Immigration New Zealand <a href="https://www.immigration.govt.nz/new-zealand-visas/apply-for-a-visa/tools-and-information/afghan-national-resettlement/eligibility-for-afghan-nationals-to-be-considered-for-resettlement-in-new-zealand">website</a>, 1,168 Afghans have arrived under several visa schemes since August 2021.</p>
<p>However, these visas were designated for those who worked for or supported New Zealand government initiatives, military, and human rights defenders, especially women. They were not primarily intended for family reunification. </p>
<p>The Rohingya people from Myanmar continue to struggle to support their families in the <a href="https://msf.org.nz/article/project-news/bangladesh-%E2%80%93-rohingya-refugee-camp-kutupalong-balukhali-ever-expanding-camp">world’s largest refugee camp</a> in Bangladesh, with little prospect of being able to safely return home. Approximately 745,000 people (an estimated 400,000 of them children) remain stuck in Cox’s Bazar following state sanctioned violence and persecution in 2017. </p>
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<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/new-zealand-has-one-of-the-lowest-numbers-of-refugees-per-capita-in-the-world-there-is-room-for-many-more-162663">New Zealand has one of the lowest numbers of refugees per capita in the world — there is room for many more</a>
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<p>Similar stories can be told of South Sudan, Yemen, Iraq – the list continues, asking tough questions of who is deserving of protection and who is less so. </p>
<h2>Meeting our commitments</h2>
<p>So, what more can be done in the New Zealand situation? </p>
<p>The New Zealand government doubled its annual historic refugee quota of up to 750 people to 1500 in 2020. Due to the Covid pandemic, however, these numbers have never been realised, with the 2020-2021 intake only accommodating 260 people. </p>
<p>The current intake year is expected to take <a href="https://www.immigration.govt.nz/documents/media/refugees-and-asylum-seekers-factsheet.pdf">fewer than 1,000</a>. Similarly, planned and budgeted increases to family reunification have fallen well short. </p>
<p>Last year, just one person was reunited through this visa category and only 54 people of the 600 allocated spaces have arrived <a href="https://www.immigration.govt.nz/documents/statistics/statistics-refugee-and-protection.pdf">this year</a>. At the very least, New Zealand could commit to taking these places retrospectively, ensuring we meet obligations we have already signed up to. </p>
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<img alt="Prime minister Jacinda Ardern walks with children dressed in costumes from other countries." src="https://images.theconversation.com/files/452974/original/file-20220318-19-7vs530.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/452974/original/file-20220318-19-7vs530.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/452974/original/file-20220318-19-7vs530.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/452974/original/file-20220318-19-7vs530.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/452974/original/file-20220318-19-7vs530.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/452974/original/file-20220318-19-7vs530.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/452974/original/file-20220318-19-7vs530.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
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<span class="caption">New Zealand’s government doubled the refugee quota in 2020 but the Covid-19 pandemic has meant that spots have not been filled.</span>
<span class="attribution"><a class="source" href="https://www.gettyimages.com.au/detail/news-photo/new-zealand-prime-minister-jacinda-ardern-walks-to-plant-a-news-photo/1157045348?adppopup=true">Phil Walter/Getty Images</a></span>
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<p>There are other areas where we could bolster our commitment to the universal rights to refugee protection, regardless of race, religion or other factors leading to persecution. </p>
<p>For example, asylum seekers whose claims for refugee status have already been approved face delays of several years before their permanent residence is granted, meaning they cannot apply for reunification of family members who often remain in precarious situations. </p>
<p>Our recent report, entitled <a href="https://www.auckland.ac.nz/content/dam/uoa/education/hattie/docs/Safe%20Start,%20Fair%20Future%20Report.pdf">Safe Start, Fair Future</a> highlights how these delays have more than tripled over the last decade. In 2011, 90% of applications were completed in 309 days; it now takes nearly 1,000. Fast-tracking these applications would make a real and tangible difference to people creating a new life in New Zealand. </p>
<p>While the specific policy details are still coming to light, New Zealand has an important role to play in protecting Ukrainians and other populations forcibly displaced in humanitarian crises. The Ukrainian response is welcome. Now let’s lift this standard to other groups equally deserving of support and protection.</p><img src="https://counter.theconversation.com/content/179467/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Jay Marlowe receives funding from the Royal Society Te Apārangi under a Rutherford Discovery Fellowship. </span></em></p>New Zealand has opened the borders to up to 4,000 Ukrainians fleeing violence in their home country. Why haven’t we been so welcoming to refugees from other parts of the world?Jay Marlowe, Professor, Co-Director Centre for Asia Pacific Refugee Studies, University of Auckland, Waipapa Taumata RauLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1792812022-03-16T20:15:40Z2022-03-16T20:15:40ZThe Groundswell protest claimed regulation and taxes are unfair to farmers – the economic numbers tell a different story<figure><img src="https://images.theconversation.com/files/452063/original/file-20220315-131677-10u5bv5.jpg?ixlib=rb-1.1.0&rect=0%2C0%2C4292%2C2854&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><span class="source">GettyImages</span></span></figcaption></figure><p>Prime minister Jacinda Ardern is <a href="https://www.stuff.co.nz/national/politics/128026639/jacinda-ardern-will-meet-groundswell-leaders-after-group-called-racist-antivax">due to meet</a><a href="https://www.stuff.co.nz/national/politics/128026639/jacinda-ardern-will-meet-groundswell-leaders-after-group-called-racist-antivax">due to meet</a> the leaders of last year’s Groundswell protests, who argue that environmental regulation and the “ute tax” have <a href="https://www.stuff.co.nz/national/politics/127034918/the-eight-key-issues-the-groundswell-group-is-protesting-about">hurt parts of the primary sector</a> and, by extension, the rest of the country. But economic data tell a different story than the farmers claim. </p>
<p>The financial contribution the agriculture sector makes to society by way of tax paid is dwarfed by the financial benefit that the sector receives by way of subsidies, concessions and other forms of assistance. </p>
<p>Considering the net benefits already delivered to farmers, there’s no justification to provide more support for the sector by further subsidising their environmental damage. </p>
<h2>Special concessions for the agricultural industry</h2>
<p>In terms of support, there are several unique tax concessions offered to parts of the agricultural sector not extended to other industries. These include special rules for deductibility of housing and capital expenses that aren’t available for other businesses.</p>
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<img alt="Prime Minister Jacinda Ardern speaking in front of media microphones and surrounded by other people." src="https://images.theconversation.com/files/452070/original/file-20220315-131692-j6zknx.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/452070/original/file-20220315-131692-j6zknx.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/452070/original/file-20220315-131692-j6zknx.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/452070/original/file-20220315-131692-j6zknx.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/452070/original/file-20220315-131692-j6zknx.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/452070/original/file-20220315-131692-j6zknx.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/452070/original/file-20220315-131692-j6zknx.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
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<span class="caption">In 2018, Prime Minister Jacinda Ardern announced an assistance package for farmers to combat mycoplasma bovis, a bacterial disease that affects cattle, causing mastitis and arthritis in adult cattle and pneumonia in calves.</span>
<span class="attribution"><a class="source" href="https://www.gettyimages.com.au/detail/news-photo/prime-minister-jacinda-ardern-speaks-to-media-during-a-news-photo/1047770054?adppopup=true">Hagen Hopkins/Getty Images</a></span>
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<p>In another tax workaround, agricultural industry access to an income equalisation scheme allows income smoothing. </p>
<p>Under this scheme, primary sector businesses are able to deposit money into the scheme during profitable years and build this up as a deduction. The money is then treated as income in the year it is withdrawn, reducing taxes in lean years. </p>
<h2>More support during tough times</h2>
<p>Government support for farmers is not limited to tax exemptions. Spending on primary services in 2019/20 was <a href="https://www.treasury.govt.nz/publications/efu/budget-economic-and-fiscal-update-2021">NZ$961 million</a> and forecast to increase to $1.3 billion in 2020/21. Public money goes into biosecurity risk management, food safety and fisheries management.</p>
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Read more:
<a href="https://theconversation.com/why-water-quality-should-have-been-an-issue-when-nz-government-joined-with-farm-sector-to-curb-emissions-125870">Why water quality should have been an issue when NZ government joined with farm sector to curb emissions</a>
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<p>Between 2018 and 2021, the Ministry of Primary Industries (MPI) <a href="https://www.mpi.govt.nz/dmsdocument/42448-201920-Annual-Report.">spent $368 million</a> on mycoplasma bovis eradication. Farmers were compensated an additional $151 million during that time. </p>
<p>The cost of recovery was meant to be split 32%-68% by industry and the ministry respectively. But as of June 30 2021, MPI reported recoverable costs of $172.6 million, of which a $72.4 million bill to farmers remained outstanding. </p>
<h2>Economic contribution comes with environmental cost</h2>
<p>It is not that the agriculture industry does not add value. About 5.5% of total New Zealand jobs were in agriculture, forestry and fishing in March 2019, according to the <a href="https://www.stats.govt.nz/information-releases/labour-market-statistics-march-2019-quarter">Household Labour Force Survey</a>. At the same time, <a href="https://www.stats.govt.nz/information-releases/national-accounts-industry-production-and-investment-year-ended-march-2019">the industry made up 10.6%</a> of the national gross domestic product. </p>
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<img alt="Two farmers with hats in front of New Zealand's parliament." src="https://images.theconversation.com/files/452073/original/file-20220315-131677-ozscuq.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/452073/original/file-20220315-131677-ozscuq.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/452073/original/file-20220315-131677-ozscuq.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/452073/original/file-20220315-131677-ozscuq.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/452073/original/file-20220315-131677-ozscuq.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/452073/original/file-20220315-131677-ozscuq.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/452073/original/file-20220315-131677-ozscuq.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
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<span class="caption">The co-founders of farming advocacy group Groundswell, Laurie Paterson (left) and Bryce McKenzie delivered a petition to Parliament on December 15, 2021 calling on the NZ Government to dump its proposed Three Waters reform.</span>
<span class="attribution"><a class="source" href="https://www.gettyimages.com.au/detail/news-photo/the-co-founders-of-farming-advocacy-group-groundswell-news-photo/1359059952?adppopup=true">Lynn Grieveson/Getty Images</a></span>
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<p>Agriculture’s higher share of GDP than employment reflects the sector’s high reliance on our natural environment to produce its output. However, this economic value comes at both a significant financial and environmental cost, often hidden, much of which falls on future generations.</p>
<p>The decision-making around Te Waihora (Lake Ellesmere) in Canterbury is one example of an indirect subsidy to intensive farming. Te Waihora is dying due to excess nutrient inputs, 95% of which come from dairy farms. </p>
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Read more:
<a href="https://theconversation.com/new-zealand-government-ignores-expert-advice-in-its-plan-to-improve-water-quality-in-rivers-and-lakes-139554">New Zealand government ignores expert advice in its plan to improve water quality in rivers and lakes</a>
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<p>Analysis by the regional council Environment Canterbury (ECan) and the Ministry for the Environment (MfE) found <a href="https://environment.govt.nz/assets/OIA/Files/18-D-02833.pdf">two key measures to stop the lake declining</a> would result in an annual loss of revenue for local dairy farmers of around $250 million. </p>
<p>ECan concluded this <a href="https://www.rnz.co.nz/news/on-the-inside/440120/polluted-waterways-why-are-we-subsidising-environmental-harm">economic impact for farmers was too high</a> and did nothing. By not charging the polluters for this harm, ECan effectively handed a subsidy to dairy farmers in this catchment to the tune of $250 million every year.</p>
<p>The ECan decision is similar to those made by other councils.</p>
<p><a href="https://environment.govt.nz/assets/OIA/Files/18-D-02833.pdf">A recent study by Christchurch City Council</a> estimated the costs to remove the nitrate from dairy farming from their drinking water to protect human health came in at $1.5 billion or almost $4,000 per person in the city. </p>
<p>Almost half of New Zealand’s <a href="https://niwa.co.nz/education-and-training/schools/students/climate-change/agriculture">greenhouse gas emissions</a> come from agriculture in the form of methane and nitrous oxide from farmed livestock. Here, the decision to exempt livestock from New Zealand’s emissions trading scheme is another subsidy to the sector. In dollar terms, the 2019 annual net emissions from agriculture at today’s carbon price ($72/tonne CO2e) amounts to $878 million. </p>
<h2>Uneven tax burden</h2>
<p>There is no doubt agriculture provides some benefit to New Zealand but this benefit is declining, at the same time that subsidies to the sector are increasing. </p>
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<img alt="Giant cow statue in front of a farming goods store." src="https://images.theconversation.com/files/452076/original/file-20220315-133396-1mt3ve7.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/452076/original/file-20220315-133396-1mt3ve7.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/452076/original/file-20220315-133396-1mt3ve7.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/452076/original/file-20220315-133396-1mt3ve7.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/452076/original/file-20220315-133396-1mt3ve7.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/452076/original/file-20220315-133396-1mt3ve7.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/452076/original/file-20220315-133396-1mt3ve7.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
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<span class="caption">About 5.5% of total New Zealand jobs were in Agriculture, Forestry and Fishing.</span>
<span class="attribution"><a class="source" href="https://www.gettyimages.com.au/detail/news-photo/giant-fibreglass-model-of-a-fresian-dairy-cow-looms-over-news-photo/1294695783?adppopup=true">Lynn Grieveson - Newsroom via Getty Images</a></span>
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<p>While the sector pays tax on income like everyone else, the amount paid by the dairy sector ($531.7 million in 2019/20 – or 0.7% of total tax revenue) looks to be substantially less than the costs associated with transfers from the government back to the sector and remediation of environmental damage caused by the sector. </p>
<p>A <a href="https://taxworkinggroup.govt.nz/sites/default/files/2019-02/twg-bg-4032531-tax-concessions-and-environmental-impacts.pdf">briefing paper to the Tax Working Group</a> in 2019 observed that the tax deduction rules for agriculture had not been reviewed in 30 years, revealing a lack of appetite to challenge the industry’s privileged position. </p>
<p>The political reluctance to hold the sector to account for its environmental damage while passing the cost on to the rest of society is even more problematic. This damage reduces the standard of living of many people living in Aotearoa and increases the economic and environmental debt for future generations. </p>
<p>So, while some in the agricultural sector argue that environmental regulation hurts the industry and therefore the rest of the country, there is a clear counterproposal: harm is done to the country when the rest of society pays for the damage created in the agricultural sector.</p><img src="https://counter.theconversation.com/content/179281/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>The authors do not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and have disclosed no relevant affiliations beyond their academic appointment.</span></em></p>Farmers from the Groundswell movement want more concessions from the government but the environmental and economic cost might be more than New Zealand can afford.Mike Joy, Senior Researcher; Institute for Governance and Policy Studies, Te Herenga Waka — Victoria University of WellingtonLisa Marriott, Professor of Taxation, Te Herenga Waka — Victoria University of WellingtonSimon Chapple, Director, Institute for Governance and Policy Studies, Te Herenga Waka — Victoria University of WellingtonLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1791922022-03-15T23:19:19Z2022-03-15T23:19:19ZTurning supermarkets into public utilities could be the solution to New Zealand’s grocery problem<figure><img src="https://images.theconversation.com/files/452079/original/file-20220315-16-1hd03cf.jpg?ixlib=rb-1.1.0&rect=35%2C53%2C3958%2C2574&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><span class="source">Getty Images</span></span></figcaption></figure><p>The Commerce Commission’s report into <a href="https://comcom.govt.nz/news-and-media/media-releases/2022/grocery-market-study-recommends-changes-to-improve-competition-and-benefit-consumers">New Zealand’s supermarket sector</a> has been criticised for not going far enough to reduce food prices, but the answer to the current duopoly might lie in treating the sector as a public utility instead of a private industry. </p>
<p>When the commission’s report was released last week, many were disappointed the watch dog didn’t propose stronger measures to rein in the sector. The commission called for a mandatory code of conduct between supermarkets and suppliers. It also recommended greater transparency around specials and loyalty programmes. </p>
<p><div data-react-class="Tweet" data-react-props="{"tweetId":"1501059242840584199"}"></div></p>
<p>But even the commission itself indicated that the “one off” market restructuring measures suggested by some might not be effective to reduce grocery costs.</p>
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Read more:
<a href="https://theconversation.com/as-the-commerce-commission-found-theres-no-magic-way-to-make-nz-supermarkets-more-competitive-178762">As the Commerce Commission found, there’s no magic way to make NZ supermarkets more competitive</a>
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<h2>A duopoly doesn’t have to mean high prices</h2>
<p>The inherent nature of unregulated food markets means nearly all channels of food distribution will contain a small number of dominant industry leaders, distorting the pricing of food products for other industry participants. </p>
<p>Power is therefore unavoidable, but this does not mean its misuse is inevitable. Properly directed, market power in the hands of a few players could prove beneficial to consumers as well as other businesses in the sector.</p>
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<img alt="" src="https://images.theconversation.com/files/452083/original/file-20220315-101106-lvo8r5.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/452083/original/file-20220315-101106-lvo8r5.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/452083/original/file-20220315-101106-lvo8r5.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/452083/original/file-20220315-101106-lvo8r5.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/452083/original/file-20220315-101106-lvo8r5.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/452083/original/file-20220315-101106-lvo8r5.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/452083/original/file-20220315-101106-lvo8r5.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
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<span class="caption">New Zealand’s grocery sector is dominated by two companies - Woolworths, which runs Countdown, and Foodstuffs, which operates Pak'n Save, New World and Four Square. Customers have long expressed concerned over high prices in the duopoly.</span>
<span class="attribution"><span class="source">Dave Rowland/Getty Images</span></span>
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<p>This fairer supermarket sector could be achieved if the industry power players were governed as <a href="https://hbr.org/2019/05/dont-break-up-facebook-treat-it-like-a-utility">regulated public utilities</a>, much like power and water. But such an approach would need to be legislated and has to combine simplicity with easy and effective enforcement.</p>
<p>To do this, the government should implement some key regulatory principles. </p>
<p>New regulations would need to ensure supermarkets do not engage in wholesale or manufacturing activity. The key to supermarket power is their control of the retail point of sale. If supermarkets are to be regulated as public utilities, then it is essential they are restricted solely to this activity. </p>
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Read more:
<a href="https://theconversation.com/the-pandemic-exposes-nzs-supply-chain-vulnerability-be-ready-for-more-inflation-in-the-year-ahead-176232">The pandemic exposes NZ’s supply chain vulnerability – be ready for more inflation in the year ahead</a>
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<h2>Fixed and publicly stated margins</h2>
<p>As public utilities, individual supermarket sites should only be allowed to charge a single fixed and publicly stated margin on the goods they sell. This is a novel requirement, but it is core to the process of regulating a supermarket as a utility. </p>
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<p>Supermarkets act as a middleman between consumers and producers. The mutual ignorance of what is happening on the other side of the retail barrier allows the supermarkets to manipulate consumers and suppliers at will. It is the key process that converts supermarket power to profit. </p>
<p>The requirement that supermarkets must apply a single, publicly posted margin to all the products in their store sets this capacity to zero, and promptly makes the retailer a fully transparent channel for suppliers and consumers. </p>
<h2>Regulation should include suppliers</h2>
<p>Producers and suppliers should not be overlooked in this new regulatory regime. The concentration of wholesalers allows large businesses to dominate non-retail food sectors such as restaurants.</p>
<p>The primary outcome of this – a lack of difference between supermarket retail and wholesale prices for food products – is noted in the Commerce Commission’s materials. </p>
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<img alt="" src="https://images.theconversation.com/files/452087/original/file-20220315-118290-er266e.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/452087/original/file-20220315-118290-er266e.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/452087/original/file-20220315-118290-er266e.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/452087/original/file-20220315-118290-er266e.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/452087/original/file-20220315-118290-er266e.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/452087/original/file-20220315-118290-er266e.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/452087/original/file-20220315-118290-er266e.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
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<span class="caption">The Commerce Commission recommended a code of conduct between suppliers and supermarkets to improve suppliers’ bargaining power.</span>
<span class="attribution"><span class="source">Phil Walter/Getty Images</span></span>
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<p>Wholesalers should not be allowed to discount products for individual buyers. At the same time, wholesalers should not be allowed to decline service to any buyers at that price unless they can demonstrate that the goods in question are not available and cannot be procured. </p>
<h2>Rule breakers should be punished</h2>
<p>The transparency these regulations create means rule breaking can be clearly and directly observed without needing to go to the supermarkets themselves. Any effective regulation must also represent an immediate risk of penalties to those who break the rules. </p>
<p>With this in mind, infringements need to be treated as “per se” offences – meaning a crime is committed simply by infringement without regulators having to prove harm to third parties. Legal action against infringers needs to be available not only to the supervising entity, but also by any private citizen, body corporate or agency of local or national government. </p>
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Read more:
<a href="https://theconversation.com/inflation-is-raising-prices-and-reducing-real-wages-what-should-be-done-to-support-nzs-low-income-households-175915">Inflation is raising prices and reducing real wages – what should be done to support NZ’s low-income households?</a>
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<p>The supervising government entity should be an integral part of a ministry that answers directly to a minister of the Crown. Finally, penalties need to be significant and levied directly against the executive officers with responsibility for breaking the rules. </p>
<p>There is nothing wrong with powerful retailers as long as they are fully transparent to both suppliers and consumers, and their power can then be used for the <a href="https://comcom.govt.nz/__data/assets/pdf_file/0027/265752/Robert-Hamlin-Submission-on-market-study-into-grocery-sector-draft-report-26-August-2021.pdf">general public good</a>. </p>
<p>There is also no reason why such regulated and transparent entities should not make a reasonable return on capital for an activity that is effectively risk free. What is a reasonable return? Maybe for any supermarket owner, a reasonable expectation of return might be the equivalent to winning the lottery once a career rather than once a year.</p><img src="https://counter.theconversation.com/content/179192/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Robert Hamlin does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>New Zealand’s supermarket industry has come under fire for high food prices and lack of competition. Is it time to consider treating the supermarket industry like water and power utilities?Robert Hamlin, Senior Lecturer in Marketing , University of OtagoLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1788762022-03-09T22:11:47Z2022-03-09T22:11:47ZBoycotting Russian products might feel right, but can individual consumers really make a difference?<figure><img src="https://images.theconversation.com/files/451078/original/file-20220309-21-gqv7c8.jpg?ixlib=rb-1.1.0&rect=0%2C0%2C5991%2C3853&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Scottish Artists for Ukraine demonstrate at the Russian consulate, Edinburgh, against the Russian military invasion of Ukraine. Picture date: Wednesday March 9, 2022.</span> <span class="attribution"><a class="source" href="https://www.gettyimages.com.au/detail/news-photo/scottish-artists-for-ukraine-demonstrate-at-the-russian-news-photo/1239049735?adppopup=true">Andrew Milligan/PA Images via Getty Images</a></span></figcaption></figure><p>Ukrainian president Volodymyr Zelenskyy’s recent <a href="https://www.reuters.com/world/ukraines-president-asks-military-aircraft-boycott-russian-oil-2022-03-07/">call for a boycott of Russian oil</a> and other import-export bans was aimed at global leaders, but consumers across social media are also advocating a form of personal economic sanctions.</p>
<p>Some New Zealand shoppers have compiled lists of alcohol brands to avoid while others have identified Ukrainian brands to support. </p>
<p><div data-react-class="Tweet" data-react-props="{"tweetId":"1499514992428666881"}"></div></p>
<p>But alongside these boycott lists are repeated dismissals by cynics who say local boycotts will have little impact on the European conflict. So who’s right?</p>
<h2>Boycotts spring from the need to do something</h2>
<p>Boycotts are meant to address a power imbalance and give individuals a say through collective action.</p>
<figure class="align-center ">
<img alt="" src="https://images.theconversation.com/files/451083/original/file-20220309-18-8vzs23.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/451083/original/file-20220309-18-8vzs23.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=340&fit=crop&dpr=1 600w, https://images.theconversation.com/files/451083/original/file-20220309-18-8vzs23.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=340&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/451083/original/file-20220309-18-8vzs23.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=340&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/451083/original/file-20220309-18-8vzs23.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=427&fit=crop&dpr=1 754w, https://images.theconversation.com/files/451083/original/file-20220309-18-8vzs23.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=427&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/451083/original/file-20220309-18-8vzs23.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=427&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">Ukrainian President Volodymyr Zelenskyy has called on other countries to boycott Russian products.</span>
<span class="attribution"><a class="source" href="https://www.gettyimages.com.au/detail/news-photo/ukrainian-president-volodymyr-zelenskyy-is-seen-at-a-street-news-photo/1239023423?adppopup=true">Ukrainian Presidency/Handout/Anadolu Agency via Getty Images</a></span>
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<p>Boycotting Russian goods gives shoppers a small sense of efficacy in relation to a wider political issue. By choosing to reject Russian products, shoppers are hoping to create enough economic pain to convince Vladimir Putin’s government to back down from its invasion of Ukraine. </p>
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<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/how-one-woman-pulled-off-the-first-consumer-boycott-and-helped-inspire-the-british-to-abolish-slavery-140313">How one woman pulled off the first consumer boycott – and helped inspire the British to abolish slavery</a>
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<p>This is not the first time consumers have attempted to achieve political change via shopping decisions. SodaStream was targeted for international boycott because of the company’s <a href="https://www.stuff.co.nz/business/74306202/sodastream-target-of-palestine-human-rights-group-in-nz">ties to Israel</a> and its factory in the West Bank. </p>
<p>Activists called on tourists to partake in “<a href="https://thespinoff.co.nz/atea/20-01-2020/boycott-bali-why-the-atrocities-in-west-papua-demands-your-attention">moral calculus</a>” before visiting Bali over Indonesia’s occupation of West Papua. </p>
<p>In the aftermath of 9/11, politicians in the United States called for <a href="https://news.virginia.edu/content/study-tracks-us-boycott-french-sounding-products-during-2003-iraq-war">a boycott of French products</a> to punish the country for its opposition to the invasion of Iraq. </p>
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Read more:
<a href="https://theconversation.com/beijing-olympics-canada-the-u-k-and-others-join-bidens-diplomatic-boycott-but-its-not-enough-173399">Beijing Olympics: Canada, the U.K. and others join Biden’s diplomatic boycott, but it’s not enough</a>
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<h2>The gap between intention and action</h2>
<p>While shoppers might make the public commitment to boycott Russian products, the reality is there are competing factors that feed into shopping decisions. The gap between intention and action can become a chasm. </p>
<p>The high cost of living in New Zealand means shoppers are typically motivated by price and convenience. A New Zealand shopper might have the best intentions to boycott Russian flour, vodka or oil, but their commitment could be challenged if those products are the cheapest options. </p>
<p>In order for a boycott to be effective, consumers need to have the means to make the sacrifice, which could involve changing a habit, buying something that is more expensive or something that is a little less convenient. </p>
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<img alt="" src="https://images.theconversation.com/files/451088/original/file-20220309-26-uqt3r0.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/451088/original/file-20220309-26-uqt3r0.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/451088/original/file-20220309-26-uqt3r0.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/451088/original/file-20220309-26-uqt3r0.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/451088/original/file-20220309-26-uqt3r0.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/451088/original/file-20220309-26-uqt3r0.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/451088/original/file-20220309-26-uqt3r0.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">Palestinians called for a boycott of Israeli products over attacks on Gaza and the West Bank in 2021.</span>
<span class="attribution"><a class="source" href="https://www.gettyimages.com.au/detail/news-photo/palestinians-call-for-boycott-israeli-products-during-a-news-photo/1233282661?adppopup=true">Nedal Eshtayah/Anadolu Agency via Getty Images</a></span>
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</figure>
<p>The second hurdle to an effective boycott is scepticism: shoppers might have the means to boycott Russia but do they believe it will have any effect? Will Russia still steamroll its way into Ukraine regardless of the shopping decisions of a group of New Zealand consumers? </p>
<p>Boycotts are more effective when shoppers believe their sacrifice will make a difference.</p>
<p>Finally, consumers need to also be able to identify what products come from Russia. While the social media lists are useful, products that seem Russian but aren’t, like Swedish brand Absolut Vodka, have the potential to be caught up in the boycott of Russian goods. </p>
<h2>The rise of buycotts</h2>
<p>Consumers often find “<a href="https://retailleader.com/what-retailers-need-know-about-buycotting">buycotts</a>” easier to commit to than the traditional boycott. A buycott is when a shopper deliberately buys a company’s or a country’s products in support of their policies. </p>
<p>Buycotts are less of a sacrifice and allow consumers to see immediate results.</p>
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<em>
<strong>
Read more:
<a href="https://theconversation.com/brand-activism-is-moving-up-the-supply-chain-corporate-accountability-or-commercial-censorship-151749">Brand activism is moving up the supply chain — corporate accountability or commercial censorship?</a>
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<p>Buying products that put money back into the Ukrainian economy or go towards charities supporting Ukrainian refugees can create a sense of doing something positive, with less sacrifice than a boycott. </p>
<p>Ultimately, the most effective boycotts are those targeted at specific companies and which can create change in response to consumer demand. Nike learned this lesson in the 1990s when it was <a href="https://www.theguardian.com/environment/green-living-blog/2012/jul/06/activism-nike">boycotted for its labour practices</a> in developing countries.</p>
<p>Consumers had options and Nike lost market share to its competitors, forcing the company to change the way it made its products. Closer to home, chocolate giant Cadbury was <a href="https://www.nzherald.co.nz/business/cadbury-caves-no-more-palm-oil-in-its-chocolate/LFYVI2YYVUAAY3Q2RMWKUNASPY/">forced to reverse course</a> after using palm oil in its dairy milk chocolate. </p>
<p>When it’s a country-level boycott, however, government sanctions need to be part of the equation. Consumers can apply pressure to the government to apply sanctions so that products from the offending country don’t make it along the supply chain. In that case, the consumer is more valuable as a voter than a boycotting shopper.</p><img src="https://counter.theconversation.com/content/178876/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Mike Lee does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>New Zealand consumers are using boycotts of Russian products as a way to voice their disapproval of the war in Ukraine. But is this the best or only way for individuals to be heard?Mike Lee, Associate Professor of Marketing, University of Auckland, Waipapa Taumata RauLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1477572020-10-17T12:19:23Z2020-10-17T12:19:23ZNew Zealand’s new parliament turns red: final 2020 election results at a glance<p><em>The article was updated on Friday November 6, 2020, to reflect the final official figures released by the Electoral Commission.</em></p>
<p>Labour is celebrating a landslide victory tonight after winning 49% of the vote (confirmed as 50% after special votes were counted). The result means Labour could govern alone — <a href="https://theconversation.com/with-polls-showing-labour-could-govern-alone-is-new-zealand-returning-to-the-days-of-elected-dictatorship-146918">the first time</a> this has happened since New Zealand introduced a mixed member proportional (MMP) electoral system in 1993. </p>
<p>In her victory speech, Prime Minister Jacinda Ardern said the result gave Labour “the mandate to accelerate our [COVID-19] response and our recovery. And tomorrow we start”.</p>
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<p>Earlier, National Party leader Judith Collins, whose party only won 26.8% of the vote (reduced to 25.6% in the final count), promised to be a “robust opposition” and “hold the government to account for failed promises”.</p>
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<p>You can read the analysis of the results by our five political experts <a href="https://theconversation.com/nz-decides-2020-5-experts-on-the-big-election-results-148245">here</a>.</p>
<p>In the new parliament, Labour will have 65 seats — four more than the 61 needed to form government. National has 33, the Green Party ten, ACT ten and the Māori Party is expected to return to parliament with one seat (later increased to two seats after special votes increased the party vote to 1.2%).</p>
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<p>The numbers are a reversal of the 2017 results, when Labour polled 36.9%, National had 44.4% of the vote and New Zealand First leader Winston Peters became the kingmaker. </p>
<p>New Zealanders had to wait almost a month before Peters announced he would form a coalition with the Labour Party, becoming deputy prime minister. The Green Party joined the coalition in a confidence and supply arrangement.</p>
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<p>In this election, NZ First was ousted from parliament, after the party failed to reach the 5% threshold and neither of its candidates managed to win an electorate seat. </p>
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<p>Five parties gained seats in parliament. The Māori Party is expected to win one of seven Māori electorate seats and return to parliament even though it only achieved 1% of the party vote (1.2% in the final count). None of the other minor parties won electorate seats or reached the 5% party vote threshold.</p>
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<p>Compared to previous elections, record numbers of New Zealanders voted early in 2020. A day before the election, <a href="https://www.rnz.co.nz/news/political/428576/election-2020-advance-votes-total-just-under-2-million">almost 2 million people</a> had already cast their vote. </p>
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<strong>
Read more:
<a href="https://theconversation.com/nz-election-2020-how-might-record-advance-voting-numbers-influence-the-final-outcome-148182">NZ election 2020: how might record advance voting numbers influence the final outcome?</a>
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<h2>Results of the referendums</h2>
<p>People also voted on two referendums: whether the <a href="https://www.referendums.govt.nz/endoflifechoice/index.html">End of Life Choice Act 2019</a> should come into force and whether the <a href="https://www.referendums.govt.nz/cannabis/index.html">recreational use of cannabis should become legal</a>. </p>
<p>The results for those are now finalised. Almost two thirds of the vote was in support of the introduction of the Right to Life legislation.</p>
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<p>The vote for legalising the recreational use of cannabis was much closer but the majority favoured the No decision.</p>
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<h2>2017 election results</h2>
<p>In 2017, the National Party won 44.4% of the votes and on election night, then prime minister Bill English <a href="https://theconversation.com/new-zealand-votes-for-conservatism-and-the-status-quo-84568">celebrated victory</a>. </p>
<p>But NZ First won 7.5% and held the balance of power. It was the third time for NZ First leader Winston Peters to become the veto player in the government-formation process. </p>
<p>After almost four weeks of negotiations, he opted to go into coalition with Labour, with the Green Party in a confidence and supply role. For the first time under New Zealand’s MMP electoral system, the new government was not led by the party that had won the largest number of seats.</p>
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<p>Jacinda Ardern <a href="https://theconversation.com/jacinda-ardern-to-become-nz-prime-minister-following-coalition-announcement-85996">became prime minister</a> in an extraordinary period in New Zealand’s political history. Just three months earlier, Ardern had been the deputy leader of a Labour Party polling in minor party territory.</p>
<p><iframe id="vrEzY" class="tc-infographic-datawrapper" src="https://datawrapper.dwcdn.net/vrEzY/4/" height="400px" width="100%" style="border: none" frameborder="0"></iframe></p>
<p><iframe id="oqT1H" class="tc-infographic-datawrapper" src="https://datawrapper.dwcdn.net/oqT1H/5/" height="400px" width="100%" style="border: none" frameborder="0"></iframe></p><img src="https://counter.theconversation.com/content/147757/count.gif" alt="The Conversation" width="1" height="1" />
Labour’s landslide election win means it could govern alone, without support from any of the other parties.Liz Minchin, Executive EditorMichael Lund, Commissioning Editor, The ConversationWes Mountain, Social Media + Visual Storytelling EditorVeronika Meduna, Science, Health + Environment New Zealand Editor, The ConversationFinlay Macdonald, New Zealand Editor, The ConversationLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1235902019-09-17T04:58:51Z2019-09-17T04:58:51ZClimate explained: how different crops or trees help strip carbon dioxide from the air<figure><img src="https://images.theconversation.com/files/292519/original/file-20190916-8658-1obxeml.jpg?ixlib=rb-1.1.0&rect=0%2C203%2C5670%2C3574&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">While hemp does not sequester as much carbon dioxide as trees, it can be used as an efficient energy crop or in concrete, both with a potentially positive carbon sequestration effect. </span> <span class="attribution"><span class="source">from www.shutterstock.com</span>, <a class="license" href="http://creativecommons.org/licenses/by-nd/4.0/">CC BY-ND</a></span></figcaption></figure><figure class="align-left ">
<img alt="" src="https://images.theconversation.com/files/287622/original/file-20190811-144878-bvgm9l.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=237&fit=clip" srcset="https://images.theconversation.com/files/287622/original/file-20190811-144878-bvgm9l.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=600&fit=crop&dpr=1 600w, https://images.theconversation.com/files/287622/original/file-20190811-144878-bvgm9l.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=600&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/287622/original/file-20190811-144878-bvgm9l.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=600&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/287622/original/file-20190811-144878-bvgm9l.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=754&fit=crop&dpr=1 754w, https://images.theconversation.com/files/287622/original/file-20190811-144878-bvgm9l.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=754&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/287622/original/file-20190811-144878-bvgm9l.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=754&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
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<p><em><strong><a href="https://theconversation.com/nz/topics/climate-explained-74664">Climate Explained</a></strong> is a collaboration between The Conversation, Stuff and the New Zealand Science Media Centre to answer your questions about climate change.</em> </p>
<p><em>If you have a question you’d like an expert to answer, please send it to climate.change@stuff.co.nz</em></p>
<blockquote>
<p><strong>Would it be helpful to undertake a nationwide and coordinated mass planting of trees and plants that are known to have a high uptake of carbon dioxide such as paulownia and hemp alongside the attempts to plant natives?</strong></p>
</blockquote>
<p>Exotic (but non-invasive) trees have their place in our efforts to capture carbon dioxide (CO₂) from the atmosphere. We could increase plantings of fruit trees and timber that we use to construct our homes. But this question refers to the potentially faster growth of some non-native species, and the associated faster removal of CO₂. </p>
<p>Importantly, fast growth (and therefore CO₂ uptake) is only one side of the story. The two other points to consider are how big a tree will grow (how much carbon it will ultimately store) and how long it will live. For example, a slower growing tree may end up <a href="https://www.nature.com/articles/s41467-019-10174-4">storing more carbon in the long run</a>. </p>
<p><a href="https://www.carbonbrief.org/one-third-worlds-new-vegetation-in-china-and-india-satellite-data-shows">China and India are leading</a> the world in regreening the landscape. Many other countries have tree-planting programmes, including New Zealand’s project to <a href="https://www.mpi.govt.nz/funding-and-programmes/forestry/one-billion-trees-programme/about-the-one-billion-trees-programme">plant a billion trees</a>, which argues that the “right tree should be planted at the right time in the right place”. </p>
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Read more:
<a href="https://theconversation.com/keeping-the-city-cool-isnt-just-about-tree-cover-it-calls-for-a-commons-based-climate-response-120491">Keeping the city cool isn't just about tree cover – it calls for a commons-based climate response</a>
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<h2>Which tree to plant where</h2>
<p>It is pointless to select tree species only for their carbon storage ability, particularly in built-up areas. Here, other selection criteria are much more important: a fast growing tree may need to be cut down after 20 years because it is unsafe, for example. Safety, resilience to environmental pressures in our cities, and aesthetics will come first. A tree that meets these criteria will ultimately be appreciated more, live longer, and store more carbon, regardless of its initial growth rate.</p>
<p>For rural plantations and afforestation, the rate of growth may well be a consideration. In New Zealand, <a href="http://www.nzjf.org.nz/new_issues/NZJF62_1_2017/40371376-204E-43a7-A68F-F779C84E64AF.pdf">exotic mono cultures</a> will absorb atmospheric carbon a lot more quickly once planted, and it may be argued that carbon sequestration goals have to be put before biodiversity considerations. Moreover, in the New Zealand context, native trees often take over in exotic (pine) plantations that are left untouched.</p>
<p>As for the two mentioned plant species: hemp is a herb and thus not competitive with the carbon sequestration ability of trees. But it may be used as an <a href="https://s3.amazonaws.com/academia.edu.documents/49339783/j.enpol.2013.02.04620161004-31545-1vls80k.pdf?response-content-disposition=inline%3B%20filename%3DHemp_A_more_sustainable_annual_energy_cr.pdf&X-Amz-Algorithm=AWS4-HMAC-SHA256&X-Amz-Credential=AKIAIWOWYYGZ2Y53UL3A%2F20190916%2Fus-east-1%2Fs3%2Faws4_request&X-Amz-Date=20190916T002950Z&X-Amz-Expires=3600&X-Amz-SignedHeaders=host&X-Amz-Signature=6e90b14297d5d7cbf383c94179db3c0f776c2edf92023e8406cf34bcddb0320e">efficient energy crop</a> or <a href="https://www.theguardian.com/sustainable-business/2014/sep/25/hemp-wood-fibre-construction-climate-change">in concrete</a>, both with a potentially positive carbon sequestration effect. </p>
<p>Paulownia, while fast growing, has a very low wood density (about half of other trees). Again, it has it’s place as a valuable construction wood, but there is no reason to give preference to this species over native trees in the New Zealand context, at least not from a carbon sequestration perspective.</p>
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Read more:
<a href="https://theconversation.com/five-climate-change-science-misconceptions-debunked-122570">Five climate change science misconceptions – debunked</a>
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<p>In summary, planting a tree is much more important than planting a particular tree. The best solution for selecting a species for a given site will be achieved when we listen to local foresters, the local community, and the latest scientific findings. </p>
<p>While planting trees should be promoted in all cases, it must also be understood that this will <a href="https://agupubs.onlinelibrary.wiley.com/doi/epdf/10.1002/2016EF000469">not save us from cutting carbon emissions</a> if we want to achieve a sustainable future.</p>
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<p><strong><em>This article is part of <a href="https://www.cjr.org/covering_climate_now/covering-climate-partnerships.php/">The Covering Climate Now</a> series</em></strong>
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<p class="fine-print"><em><span>Sebastian Leuzinger receives funding from The Royal Society of New Zealand. </span></em></p>Planting any tree is more important than planting a particular tree when it comes to removing carbon dioxide from the atmosphere.Sebastian Leuzinger, Associate Professor, Auckland University of TechnologyLicensed as Creative Commons – attribution, no derivatives.