Emissions intensities per capita in Australia and New Zealand are among the highest of all developed countries. New Zealand and Australia have both been criticised for their lack of action on climate change issues. When compared to other OECD countries, both New Zealand and Australia have poor environmental performance across a range of sectors, including road transport, which is the focus of this study. We examine the regulatory approaches, and the use of fiscal instruments, to influence

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... e purchasing behaviour in the European Union. We contrast this with action taken in Australia and New Zealand and question whether these two countries can make greater use of policy tools, such as those adopted in the European Union, to help address growing emissions from road transport. The study uses secondary source data to illustrate the absence of action to address road transport emissions in Australia and New Zealand. We conclude that, in the absence of implementation of climate change policies directly targeted at improving environmental performance, both countries risk developing a reputation as environmental tax havens within the OECD.