The poverty implications of high oil prices in South Africa
An energy-focused macro-micro approach is used to assess the poverty implications of government policy response to increases in international oil prices in South Africa. The first scenario assumes that increases in international oil prices are passed on to end users with no changes in government pol...
| Main Authors: | , , |
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| Format: | Journal Article |
| Language: | Inglés |
| Published: |
Cambridge University Press
2012
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| Subjects: | |
| Online Access: | https://hdl.handle.net/10568/153278 |
| _version_ | 1855515575823892480 |
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| author | Chitiga, Margaret Fofana, Ismaël Mabugu, Ramos |
| author_browse | Chitiga, Margaret Fofana, Ismaël Mabugu, Ramos |
| author_facet | Chitiga, Margaret Fofana, Ismaël Mabugu, Ramos |
| author_sort | Chitiga, Margaret |
| collection | Repository of Agricultural Research Outputs (CGSpace) |
| description | An energy-focused macro-micro approach is used to assess the poverty implications of government policy response to increases in international oil prices in South Africa. The first scenario assumes that increases in international oil prices are passed on to end users with no changes in government policy instruments. In this scenario, poverty indicators increase. The second scenario assumes that the world price increases are nullified by a price subsidy by the government. This scenario still leads to an increase in poverty as the beneficial price effect is cancelled out by a decline in households’ income induced by the financing method used. While revenue generated from a 50 per cent tax on windfall profit of the petroleum industry helps to minimize the loss in government revenue, it does not contribute to mitigating the increasing poverty trend, since the decline in saving and investment under this scenario restricts the country's growth, employment and income distribution perspectives. |
| format | Journal Article |
| id | CGSpace153278 |
| institution | CGIAR Consortium |
| language | Inglés |
| publishDate | 2012 |
| publishDateRange | 2012 |
| publishDateSort | 2012 |
| publisher | Cambridge University Press |
| publisherStr | Cambridge University Press |
| record_format | dspace |
| spelling | CGSpace1532782024-11-15T08:52:08Z The poverty implications of high oil prices in South Africa Chitiga, Margaret Fofana, Ismaël Mabugu, Ramos poverty oil and gas industries prices An energy-focused macro-micro approach is used to assess the poverty implications of government policy response to increases in international oil prices in South Africa. The first scenario assumes that increases in international oil prices are passed on to end users with no changes in government policy instruments. In this scenario, poverty indicators increase. The second scenario assumes that the world price increases are nullified by a price subsidy by the government. This scenario still leads to an increase in poverty as the beneficial price effect is cancelled out by a decline in households’ income induced by the financing method used. While revenue generated from a 50 per cent tax on windfall profit of the petroleum industry helps to minimize the loss in government revenue, it does not contribute to mitigating the increasing poverty trend, since the decline in saving and investment under this scenario restricts the country's growth, employment and income distribution perspectives. 2012-06 2024-10-01T13:55:53Z 2024-10-01T13:55:53Z Journal Article https://hdl.handle.net/10568/153278 en Limited Access Cambridge University Press Margaret Chitiga, Ismael Fofana and Ramos Mabugu (2012). The poverty implications of high oil prices in South Africa. Environment and Development Economics, 17, pp 293-313. doi:10.1017/S1355770X11000428. |
| spellingShingle | poverty oil and gas industries prices Chitiga, Margaret Fofana, Ismaël Mabugu, Ramos The poverty implications of high oil prices in South Africa |
| title | The poverty implications of high oil prices in South Africa |
| title_full | The poverty implications of high oil prices in South Africa |
| title_fullStr | The poverty implications of high oil prices in South Africa |
| title_full_unstemmed | The poverty implications of high oil prices in South Africa |
| title_short | The poverty implications of high oil prices in South Africa |
| title_sort | poverty implications of high oil prices in south africa |
| topic | poverty oil and gas industries prices |
| url | https://hdl.handle.net/10568/153278 |
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