Indicators of regional and national economies
All actions in this strategy should contribute to improved quality of life and economic prosperity in Canterbury. This set of goals measures the combined effects of many of the other target areas. Although some of these goals, such as regional GDP, are influenced by initiatives outside this strategy, it is important to evaluate how implementation programmes contribute to economic wealth and social wellbeing.
In 2020, additional goals for this target were created using a capitals approach. This approach is a way of defining value to allow a deeper understanding of economic impacts and dependencies across four categories. These categories include:
- Natural capital: the stock of renewable and non-renewable resources (e.g. elements in the natural environment such as water, air, plants and animals, and minerals).
- Human capital: the knowledge, skills, competencies and experience possessed by an individual or population.
- Social capital: the networks of relationships among people who live or work in a community.
- Produced capital: also known as manufactured capital, refers to human-made assets and infrastructure used to produce goods and services (e.g. buildings, machinery and equipment).
Here's how things are progressing against 2025 goals. View information on:
Added-value from water
By 2025: Increase the value-add per unit of water use in consumptive activities.
Has this goal been met?
We do not have sufficient information to assess whether this goal has been met. Environment Canterbury is unable to accurately measure water use at an individual farm or sector level (within agriculture, or other industries such as processing and/or manufacturing).
However, based on measures of GDP in the Waitaha region (2021), assumptions can be made about the value-add of water on the region’s agricultural sector, as the region’s top ten exported goods are food-related.
Access to water allows the agricultural sector to sustain higher stocking rates, pasture productivity, and milk solids production and supporting food manufacturing industries which in turn, influences farm profitability and regional economic returns.
- A draft Regional Agricultural Economic Model is being produced to evaluate the economic impacts of agricultural policy changes in Canterbury region including on farm profitability. The model was commissioned to support Environment Canterbury in its review of the Canterbury Regional Policy Statement (paused in November 2024).
- Central Plains Water Ltd. Annual Report 2024 (PDF file, 6.6 MB) highlights the value of sustainable delivery of water in supporting its shareholders.
- The Regional Agricultural Economic Model once finalised could be used to assess the value-add from water. Suitable metrics to improve reporting on this Goal will be identified.
- Develop a programme of work to support improved understanding of water take and use to improve the efficiency and effectiveness of the Environment Canterbury’s consenting service.
By 2025: Productivity of water use grows by 3% per annum.
Has this goal been met?
We do not have sufficient information to assess whether this goal has been met. Environment Canterbury is unable to accurately measure water use at an individual farm or sector level (within agriculture, or other industries such as processing and/or manufacturing).
However, based on measures of GDP in the Waitaha region (2021), assumptions can be made about the value-add of water on the region’s agricultural sector, as the region’s top ten exported goods are food-related.
Access to water allows the agricultural sector to sustain higher stocking rates, pasture productivity, and milk solids production and supporting food manufacturing industries which in turn, influences farm profitability and regional economic returns.
A draft Regional Agricultural Economic Model was commissioned to evaluate the economic impacts of agricultural policy changes in the Canterbury region, including on-farm profitability. This model will support Environment Canterbury’s review of its Regional Policy Statement.
- The draft Regional Agricultural Economic Model, once finalised, could be used to assess the value-add from water.
- Develop a programme of work to support improved understanding of water take and use to improve the efficiency and effectiveness of the Environment Canterbury’s consenting service.
By 2025: No decline in rural economic and social vitality from that measured in 2010.
Has the goal been met?
We do not have sufficient information to assess whether this goal has been met.
Direct measures of rural economic and social vitality are not available, however, school enrolments may be used in the future to evaluate this goal (as proposed in the draft Regional Agricultural Economic Model being developed by Environment Canterbury).
No highlights to date.
The draft Regional Agricultural Economic Model, once finalised by Environment Canterbury to support development of the Regional Policy Statement, could be used to define and assess measures of rural economic and social vitality.
By 2025: Canterbury household income is maintained or expanded relative to national household income.
Has the goal been met?
This goal has not been met. In 2024, the regional average household income in Canterbury was $115,790, which is lower than the 2024 national average household income of $132,812.
Household income takes into consideration income from sources such as wages and salaries from employment, self-employment earnings, allowances, benefits, and superannuation.
The Canterbury Mayoral Forum Plan for Canterbury 2023–2025 has identified shared prosperity for all communities as one of their three priority focus areas. The long-term vision is to build on economic strengths and developing emerging sectors, grow, attract and retain a skilled workforce, improve the transport network and coordinate strategies for housing our communities.
- The Canterbury Mayoral Forum will continue to advocate for the prosperity of Canterbury communities and work to influence central government policies and programmes to support our local communities.
- ChristchurchNZ will continue to produce annual and quarterly reports on the state of the region’s economy.
Externalities and opportunity costs
By 2025: Develop a way of assessing costs and benefits using a capitals approach that recognises externalities and opportunity costs.
Has this goal been met?
Environment Canterbury has commissioned work to inform the review of the Canterbury Regional Policy Statement. This work will result in a draft Regional Agricultural Economic Model to better understand the wealth benefits of our region’s ecosystem services. Ecosystem services include the direct benefits human derive such as food, water supply and raw materials as well as the supporting systems and processes that enable healthy functional ecosystems (e.g. climate regulation and soil formation).
The draft Regional Agricultural Economic Model does not use a capitals approach to model the costs and benefits of different policy options, however, still recognises externalities and opportunity costs.
- The draft Regional Agricultural Economic Model captures some natural capital factors (e.g. nutrient loss, GHG emissions) which are treated as constraints to understand the impact of policy options.
- As a part of the draft Regional Agricultural Economic Model, Environment Canterbury is developing a draft Ecosystem Services Model to understand the wealth benefits of ecosystem services.
Once finalised by Environment Canterbury, the Regional Agricultural Economic and Regional Economic and Ecosystem Services Models, which includes data on environmental impacts (e.g. biodiversity loss, long-term water quality degradation, soil depletion) would provide a more comprehensive assessment of trade-offs and economic costs in the region.
By 2025: Develop options (including a preferred option) for funding the reinvestment in natural capital, including addressing legacy issues and future opportunity costs.
Has the goal been met?
The Selwyn Waihora and Ashburton water zone committees developed options (including a preferred option), for funding the reinvestment in natural capital, to address legacy issues with groundwater levels in their respective zones. These options and recommendations were included in their Zone Implementation Programme Addendums (ZIPAs) in 2013.
- The Waikirikiri/Selwyn Near River Recharge project is a multi-million dollar scheme to enhance cultural, environmental and recreational values in the region by discharging clean Rakaia River water into the groundwater system near the Waikirikiri/Selwyn River during dry periods. It was successfully commissioned in autumn 2021.
- The Hekeao/Hinds Plains community managed aquifer recharge pilot project successfully reinvested in natural capital by improving groundwater quantity and quality, addressing legacy nitrate pollution, and attempting to ensuring future resilience.
- The Hekeao/Hinds Water Enhancement Trust has applied for a resource consent (decision to be made) to expand and operate managed aquifer recharge at a catchment scale over 34 sites (14 existing and 20 new).
- Environment Canterbury is collaborating with Central Plains Water Limited to manage the Waikirikiri/Selwyn Near River Recharge facility.
- Environment Canterbury continues to explore the feasibility of managed aquifer recharge across the region and its benefits for agriculture, water quality, ecosystem health.
By 2025: Measures in place to assess the economic wealth benefits of freshwater biodiversity (and other ecosystem services) and recreational use of water.
Has the goal been met?
Environment Canterbury commissioned work, the development of a draft Regional Agricultural Economic Model, to inform the review of the Canterbury Regional Policy Statement (paused November 2024) to understand the wealth benefits of ecosystem services. Ecosystem services include the direct benefits human derive such as food, water supply and raw materials as well as the supporting systems and processes that enable healthy functional ecosystems (e.g. climate regulation and soil formation).
The draft Regional Agricultural Economic Model will provide a structured framework for assessing the economic trade-offs associated with freshwater management. Additionally, this work will model the costs of mitigation measures such as riparian planting, wetland restoration, and improved nutrient management, to help the region’s decision-makers understand the financial implications of actions to enhance ecosystem health and water quality.
- The draft Regional Agricultural Economic Model will demonstrate how reductions in nutrient losses, sedimentation, and water use can contribute to improved freshwater conditions, which in turn benefit biodiversity and recreational opportunities.
- The draft Regional Agricultural Economic Model will help identify strategies that balance agricultural productivity with environmental restoration.
Peer review and finalisation of the draft Regional Agricultural Economic Model.