In order to encourage the use of more environmentally friendly energy resources, the government's emissions trading policy imposes taxes on anything that emits greenhouse gases, the Dominion Post reports.

Domestic company Solid Energy recently paid for a report that is critical of the policy, which would push its operating costs higher and cut demand for coal.

Solid Energy gave $240,750 to the $1 million project by the New Zealand Institute of Economic Research.

The final report suggests the emissions trading policy would impose a heavy economic burden, costing households about $3,000 a year by 2025 and cutting average wages by $90 a week.