Introducing carbon taxes in South Africa

dc.creatorAlton, Theresa
dc.creatorArndt, Channing
dc.creatorDavies, Rob
dc.creatorHartley, Faaiqa
dc.creatorMakrelov, Konstantin
dc.creatorThurlow, James
dc.creatorUbogu, Dumebi
dc.date2014-03
dc.date2024-08-01T02:49:42Z
dc.date2024-08-01T02:49:42Z
dc.date.accessioned2026-06-27T15:12:08Z
dc.descriptionSouth Africa is considering introducing a carbon tax to reduce greenhouse gas emissions. Following a discussion of the motivations for considering a carbon tax, we evaluate potential impacts using a dynamic economywide model linked to an energy sector model including a detailed evaluation of border carbon adjustments. Results indicate that a phased-in carbon tax of US$30 per ton of CO2 can achieve national emissions reductions targets set for 2025. Relative to a baseline with free disposal of CO2, constant world prices and no change in trading partner behavior, the preferred tax scenario reduces national welfare and employment by about 1.2 and 0.6 percent, respectively. However, if trading partners unilaterally impose a carbon consumption tax on South African exports, then welfare/employment losses exceed those from a domestic carbon tax. South Africa can lessen welfare/employment losses by introducing its own border carbon adjustments. The mode for recycling carbon tax revenues strongly influences distributional outcomes, with tradeoffs between growth and equity.
dc.identifierhttps://hdl.handle.net/10568/149658
dc.identifier.urihttp://hdl.handle.net/123456789/97543
dc.languageen
dc.publisherElsevier
dc.rightsOpen Access
dc.sourceAlton, Theresa; Arndt, Channing; Davies, Rob; Hartley, Faaiqa; Makrelov, Konstantin; Thurlow, James; and Ubogu, Dumebi. 2014. Introducing carbon taxes in South Africa. Applied Energy 116(March 2014): 344-354. https://doi.org/10.1016/j.apenergy.2013.11.034
dc.subjecteconomic growth
dc.subjectemployment
dc.subjectcarbon
dc.subjectenvironmental tax
dc.subjectenergy
dc.titleIntroducing carbon taxes in South Africa
dc.typeJournal Article

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