New Zealand Climate Change Impact Report: modelling decarbonisation

This report assesses the financial value at risk from climate regulation in New Zealand. In partnership with a ‘Big Four’ accounting firm, we were commissioned to estimate the value of financial assets at risk from climate regulation in New Zealand.

The analysis used Vivid’s in-house, computational general equilibrium (CGE) model, called ViEW, to examine how climate policy shocks might propagate through the New Zealand economy over time. Two policy scenarios were devised and analysed. Having determined macro level impacts, the work then explored how the financial economy would be affected. This was done by analysing and modelling the link between specific financial assets and the predicted changes in output across sectors such as forestry, agriculture, transport and tourism.

The findings provided the client with a strategic tool to evaluate and manage the financial value at risk from climate regulation in New Zealand.