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Industries
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Providing advice and forecasts in the area of energy sector investment
We provide expert advice on energy. Principal economics are experts in the field of energy economics with experience in developing and adopting economic models assessing energy issues in New Zealand.
Environment
Fundamental uncertainty in the future climate requires new ways of planning
We offer a comprehensive range of services to support our clients in navigating the complex landscape of climate change and environmental issues. Our team of experts are experienced in conducting literature reviews, policy assessments, and decision making under conditions of fundamental uncertainty
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Housing
Housing depends on a range of factors, including affordability, location of jobs and preferences
Our team at Principal Economics encompass a unique combination of knowledge, experience, and skills suited for solving spatial and urban development and housing issues.
Infrastructure
Robust economic frameworks and empirical methods, informed by evidence, shaped in collaboration with stakeholders.
We assist our clients in identifying the primary and secondary impacts of infrastructure investments.
Tourism
Valuing the direct and indirect benefits and costs of tourism
We have used different data sets alongside with our tourism modelling capabilities for evaluating the impact of a range of investments and policy initiatives in the tourism sector.
Regulatory Economics
Transport
Accessibility is the potential for interaction with locations dispersed over space
Our team currently lead some of the most important transport policy topics. This includes providing expert advice on transport equity, emission reduction policies and decision making under deep uncertainty.
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Economic impact analysis
Making decisions in uncertain times needs precise understanding of the costs and benefits. We can assist by identifying fiscal, economic and wellbeing benefits from your investment decision or policy intervention.
Economic research
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Market analysis
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Macroeconomic consulting
In the rapidly changing global economy, it is increasingly essential to have a comprehensive understanding of macroeconomic dynamics and conduct a robust analysis of the economic environment to make informed strategic decisions.
Cost benefit analysis
Making decisions in uncertain times needs precise understanding of the costs and benefits. We can assist by identifying fiscal, economic and wellbeing benefits from your investment decision or policy intervention.
Forecasting and modelling
Making decisions in uncertain times needs precise understanding of the costs and benefits. We can assist by identifying fiscal, economic and wellbeing benefits from your investment decision or policy intervention.
Spatial analysis and modelling
In the rapidly changing global economy, it is increasingly essential to have a comprehensive understanding of macroeconomic dynamics and conduct a robust analysis of the economic environment to make informed strategic decisions.
Business case approach
Our team have led business cases for a range of sensitive topics.
About Us
Our consultancy services are driven by the questions of clients, informed by robust evidence, shaped in collaboration with stakeholders, rooted in multi-deciplinary approaches and guided by principles of Economics. Our company is a Tier 2 AOG consultant.
About Us
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Our purpose, mission, and values guide our actions and aspirations. We are dedicated to driving positive change, delivering innovative solutions, and upholding the highest standards of professionalism. By adhering to these principles, we aim to make a lasting impact and contribute to the betterment of society.
Our Corporate Commitments
At Principal Economics, we are dedicated to making a positive impact on society and delivering value to our clients through our unwavering commitment to excellence and responsible business practices. As an economics consulting firm, we recognize the importance of addressing the pressing challenges of our time and striving for inclusive growth, community engagement, diversity and inclusion, ethics and integrity, health and safety, as well as sustainability.
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Exceptional People and Culture
At Principal Economics, our approach to work is driven by a commitment to excellence, collaboration, and client-centricity. We leverage our expertise, draw inspiration from industry-leading organisations, and continuously refine our practices to ensure we deliver exceptional results. Here's an overview of how we work:
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Here we provide frontier knowledge and data collected from our latest reports and analyses
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Publications
Knowledge Hub
Articles
Economic Impact of New Zealand's Second Emission Reduction Plan
CGE modelling of ERP2
This report uses CGE modelling to estimate GDP, employment and distributional impacts of the Emissions Reduction Plan 2 (ERP2), which delineates Aotearoa New Zealand's strategy to attain its emissions reduction objectives for the 2026-2030 period, alongside setting a path towards achieving long-term emissions reduction objectives.
Climate change adaptation and investment decision making
Aotearoa New Zealand suffers from an infrastructure deficit. Without the key infrastructure needed now for our economy to thrive, we deprive future generations from significant economic prosperity.
Review of Housing and Business Development Capacity Assessments
The Ministry for the Environment (MfE) appointed Principal Economics to review the Housing and Business Development Capacity Assessments HBAs). Our review included all councils’ HBAs, except for Rotorua and Wellington, which were not available at the time of this review.
Incorporating distributional impacts (equity) into the CBA framework
Transportation decisions can have large and varied impacts on travellers and their communities. It’s important to measure these effects and consider their impact on various groups when planning projects.
Business Development Capacity Assessment for Dunedin City
Dunedin City Council appointed Principal Economics to provide a comprehensive assessment of the sufficiency in development capacity of business land within Dunedin to fulfils requirements of the the National Policy Statement on Urban Development
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Read inspiring publications that challenge conventional thinking by reframing current issues, igniting fresh conversations, and discovering innovative solutions.
Database of road transport elasticities
Emission reduction initiatives
We provide a comprehensive summary of potential policy areas suitable for emissions reduction. This inludes a review of policy areas including active transport, mobility as a service, ridesharing, telework, parking pricing, road user pricing, carbon taxes and more.
VKT Dashboard
This household and regional VKT dashboard showcases the power of using frontier data manipulation methods and granular IDI data
Drivers of House Price Growth
We provide an extensive review and test the factors of housing price growth in New Zealand. We assessed the level of agreement and certainty with the source of house price growth over the last fifty years.
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SURF
Transport equity
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Contact Us
Our team
Dr Eilya Torshizian
Eilya is the CEO of Principal Economics with extensive executive and consultancy experience. Eilya is experienced in managing large teams of applied researchers and has led a wide range of high-profile infrastructure projects in New Zealand.
Eugene Isack
Eugene has over a decade experience in the economics and planning consulting and is experienced in data analysis and transport and economic modelling, with specialised skills in geographic information systems (GIS), big data analysis, and is a registered Statistics IDI researcher.
Alina Fehling
Alina is experienced in data analysis and is interested in welfare, inequality and trade topics.
Ruyi Jia
Ruyi is specialised in economic modelling and data analysis, with a keen interest in advancing the energy sector in New Zealand.
Phil Donovan
Phil has over a decade consulting experience in the areas of transport, planning and economics. He is experienced in data analysis and a range of modelling, with specialised skills in programming and reproducible analysis with tools such as R, Python, SQL, Git(Hub), Docker, big data.
The standardised super-peak hedge product
Ruyi Jia, Dr Eilya Torshizian
Bringing Transparency and Liquidity to Aotearoa’s Electricity Hedge Market
Principal Economics is delighted to release our new report for the Electricity Authority, evaluating market-making parameters for a standardised super‑peak hedge contract. This analysis supports regulatory design that promotes price transparency, market liquidity, and robust consumer outcomes.
Key Findings
- Tiered Spread Cap Recommendation: We suggest a responsive cap structure with a 3.5% spread during normal conditions, and up to 8% during high-volatility or stress periods, ensuring a balance between affordability for hedge-takers and sustainable participation by market makers.
- Optimal Quote Depth Identified: Market-maker net benefits peak between 10–15 MW of quote depth. Beyond this range, marginal benefits decline, reflecting diminishing returns.
- Evidence-Based Elasticity Insights: Regression results show that in high-volatility environments, a 1% increase in volatility increases spreads by ~0.37%, while doubling depth lowers spreads by ~8%, highlighting the trade-off between risk and liquidity.
- Real-World Spread Benchmarking: Analysis of super‑peak auction data reveals median effective spreads around 3%, with the 95th percentile reaching 9–10%, supporting the recommended cap framework.
- Policy Framework Based on an Optimal Frontier: We apply an optimal frontier approach, plotting trade-offs between spread and depth to identify efficient market-making combinations. These choices deliver targeted liquidity at minimal cost—supporting the Electricity Authority’s public-interest objectives.
Why This Matters
The findings inform regulatory calibration of market-making in New Zealand’s super-peak hedge markets—helping ensure resilience amid volatility and price shocks, while avoiding onerous caps that stifle market participation. Our evidence-based design framework is meant to support durable, fair, and cost-conscious policy choices.
Read the full report for a comprehensive breakdown of our methodology, data, simulations, and policy implications: Download the report PDF here.