The stupid petrol excise holiday also resulted in the transport sector bidding more ETS credits away from other sectors.
Daalder notes that it amounts to about two hundred thousand tonnes of extra transport emissions. Government auctions about 5 million tonnes of credits per quarter, and that volume won't change with the excise holiday.
So all that's then happened is a shift in where ETS credits have wound up, or potentially a slight increase in tree-planting as compared to the counterfactual. It won't and can't have affected net national emissions. The binding cap binds.
The excise holiday was still really stupid. But any increase in transport emissions means a reduction in net emissions elsewhere.
Previously:
- Gas tax holidays (and me in Newsroom on it)
- Me, in March, noting they'd obviously not thought through RUC. Then in June, on getting the OIA back, seeing that they'd not had time to think through RUC. And me in Newsroom again on that. What a catastrophe of a policy process.
- The terrible dynamic of extensions
- Petrol excise holidays and inflation (and me in Newsroom on it)
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