Searching for triple dividends in South Africa: Fighting CO2 pollution and poverty while promoting growth

Jan van Heerden, Reyer Gerlagh, James Blignaut, Mark Horridge, Sebastiaan Hess, Ramos Mabugu, Margaret Mabugu

Research output: Contribution to journalArticlepeer-review

Abstract

A CGE model of South Africa is used to find the potential for a double or triple dividend if the revenues raised from an energy-related environmental tax are recycled to households and industry through lowering existing taxes. Four environmental taxes and three revenue-recycling schemes are compared. The environmental taxes are (i) a tax on greenhouse gas emissions, (ii) a fuel tax, (iii) a tax on electricity use, and (iv) an energy tax. The four taxes are constructed such that they have a comparable effect on emissions. The revenue is recycled through either (i) a direct tax break on both labour and capital, (ii) an indirect tax break to all households, or (iii) a reduction in the price of food. A triple dividend is found - decreasing emissions, increasing GDP, and decreasing poverty - when any one of the environmental taxes is recycled through a reduction in food prices. Copyright © 2006 by the IAEE. All rights reserved.
Original languageEnglish
Pages (from-to)113-141
Number of pages28
JournalEnergy Journal
Volume27
Issue number2
Publication statusPublished - 2006

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