Introducing carbon taxes in South Africa

South 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...

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Autores principales: Alton, Theresa, Arndt, Channing, Davies, Rob, Hartley, Faaiqa, Makrelov, Konstantin, Thurlow, James, Ubogu, Dumebi
Formato: Journal Article
Lenguaje:Inglés
Publicado: Elsevier 2014
Materias:
Acceso en línea:https://hdl.handle.net/10568/149658
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author Alton, Theresa
Arndt, Channing
Davies, Rob
Hartley, Faaiqa
Makrelov, Konstantin
Thurlow, James
Ubogu, Dumebi
author_browse Alton, Theresa
Arndt, Channing
Davies, Rob
Hartley, Faaiqa
Makrelov, Konstantin
Thurlow, James
Ubogu, Dumebi
author_facet Alton, Theresa
Arndt, Channing
Davies, Rob
Hartley, Faaiqa
Makrelov, Konstantin
Thurlow, James
Ubogu, Dumebi
author_sort Alton, Theresa
collection Repository of Agricultural Research Outputs (CGSpace)
description South 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.
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spelling CGSpace1496582025-09-25T13:01:37Z Introducing carbon taxes in South Africa Alton, Theresa Arndt, Channing Davies, Rob Hartley, Faaiqa Makrelov, Konstantin Thurlow, James Ubogu, Dumebi economic growth employment carbon environmental tax energy South 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. 2014-03 2024-08-01T02:49:42Z 2024-08-01T02:49:42Z Journal Article https://hdl.handle.net/10568/149658 en Open Access Elsevier Alton, 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
spellingShingle economic growth
employment
carbon
environmental tax
energy
Alton, Theresa
Arndt, Channing
Davies, Rob
Hartley, Faaiqa
Makrelov, Konstantin
Thurlow, James
Ubogu, Dumebi
Introducing carbon taxes in South Africa
title Introducing carbon taxes in South Africa
title_full Introducing carbon taxes in South Africa
title_fullStr Introducing carbon taxes in South Africa
title_full_unstemmed Introducing carbon taxes in South Africa
title_short Introducing carbon taxes in South Africa
title_sort introducing carbon taxes in south africa
topic economic growth
employment
carbon
environmental tax
energy
url https://hdl.handle.net/10568/149658
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