The Government may return ETS revenue back to Kiwi households.

Officials have been giving the Government advice on potentially giving New Zealanders a dividend from the Emissions Trading Scheme.

New Zealand Initiative Chief Economist Eric Crampton says Canada has a version of this policy in place and most carbon tax payments are returned to households.

"The Canadian Minister was able to stand up at press interviews and say- look this isn't due to rising carbon prices, but remember that every household, or at least between 80 and 90 percent of households get more money back through the carbon dividend than they ever pay in carbon prices."

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