Tax Policy to Reduce Carbon Emissions in South Africa

Devarajan, Shantayanan; Go, Delfin S.; Robinson, Sherman; Thierfelder, Karen

dc.creator	Devarajan, Shantayanan
dc.creator	Go, Delfin S.
dc.creator	Robinson, Sherman
dc.creator	Thierfelder, Karen
dc.date	2012-03-19T19:10:26Z
dc.date	2012-03-19T19:10:26Z
dc.date	2009-05-01
dc.date.accessioned	2023-02-17T21:09:40Z
dc.date.available	2023-02-17T21:09:40Z
dc.identifier	http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20090518093557
dc.identifier	http://hdl.handle.net/10986/4127
dc.identifier.uri	http://localhost:8080/xmlui/handle/CUHPOERS/245164
dc.description	Noting that South Africa may be one of the few African countries that could contribute to mitigating climate change, the authors explore the impact of a carbon tax relative to alternative energy taxes on economic welfare. Using a disaggregate general-equilibrium model of the South African economy, they capture the structural characteristics of the energy sector, linking a supply mix that is heavily skewed toward coal to energy use by different sectors and hence their carbon content. The authors consider a "pure" carbon tax as well as various proxy taxes such as those on energy or energy-intensive sectors like transport and basic metals, all of which achieve the same level of carbon reduction. In general, the more targeted the tax to carbon emissions, the better the welfare results. If a carbon tax is feasible, it will have the least marginal cost of abatement by a substantial amount when compared to alternative tax instruments. If a carbon tax is not feasible, a sales tax on energy inputs is the next best option. Moreover, labor market distortions such as labor market segmentation or unemployment will likely dominate the welfare and equity implications of a carbon tax for South Africa. This being the case, if South Africa were able to remove some of the distortions in the labor market, the cost of carbon taxation would be negligible. In short, the discussion of carbon taxation in South Africa can focus on considerations other than the economic welfare costs, which are likely to be quite low.
dc.language	English
dc.relation	Policy Research working paper ; no. WPS 4933
dc.rights	CC BY 3.0 IGO
dc.rights	http://creativecommons.org/licenses/by/3.0/igo/
dc.rights	World Bank
dc.subject	ABATEMENT
dc.subject	ABATEMENT COST
dc.subject	ADVERSE EFFECTS
dc.subject	AIR
dc.subject	AIR POLLUTION
dc.subject	ALTERNATIVE ENERGY
dc.subject	ALTERNATIVE POLICY INSTRUMENTS
dc.subject	APPROACH
dc.subject	ATMOSPHERE
dc.subject	AVERAGE PER CAPITA EMISSIONS
dc.subject	BASIC METALS
dc.subject	CARBON
dc.subject	CARBON CAPTURE
dc.subject	CARBON CONTENT
dc.subject	CARBON DIOXIDE
dc.subject	CARBON DIOXIDE EMISSIONS
dc.subject	CARBON EMISSION
dc.subject	CARBON EMISSIONS
dc.subject	CARBON TAX
dc.subject	CARBON TAXES
dc.subject	CLEAN TECHNOLOGIES
dc.subject	CLEANER ENERGY
dc.subject	CLEANER TECHNOLOGY
dc.subject	CLIMATE CHANGE
dc.subject	CLIMATE CHANGE STRATEGY
dc.subject	CLIMATE POLICY
dc.subject	COAL
dc.subject	COAL ENERGY
dc.subject	COAL MINING
dc.subject	CONSUMPTION OF PETROLEUM
dc.subject	COST OF ENERGY
dc.subject	CPI
dc.subject	CRUDE OIL
dc.subject	DEMAND ELASTICITIES
dc.subject	DEMAND ELASTICITY
dc.subject	DEVELOPED COUNTRIES
dc.subject	DISTORTIONARY TAXES
dc.subject	DIVIDENDS
dc.subject	DOUBLE DIVIDEND
dc.subject	ECONOMIC ANALYSIS
dc.subject	ECONOMIC IMPACT
dc.subject	ECONOMIC WELFARE
dc.subject	ECONOMICS
dc.subject	ELASTICITIES
dc.subject	ELASTICITY OF SUBSTITUTION
dc.subject	ELASTICITY VALUES
dc.subject	ELECTRICAL MACHINERY
dc.subject	ELECTRICITY
dc.subject	ELECTRICITY SECTOR
dc.subject	EMISSION DATA
dc.subject	EMISSION REDUCTION
dc.subject	EMISSION REDUCTION TARGETS
dc.subject	EMISSION REDUCTIONS
dc.subject	EMISSION TARGETS
dc.subject	EMISSION TRADING
dc.subject	EMISSIONS REDUCTION
dc.subject	ENERGY CONSUMPTION
dc.subject	ENERGY COSTS
dc.subject	ENERGY DEMAND
dc.subject	ENERGY ECONOMICS
dc.subject	ENERGY EXPENDITURE
dc.subject	ENERGY EXPENDITURES
dc.subject	ENERGY INPUT
dc.subject	ENERGY INTENSITY
dc.subject	ENERGY INTENSIVE
dc.subject	ENERGY POLICIES
dc.subject	ENERGY POLICY
dc.subject	ENERGY PRICES
dc.subject	ENERGY PRICING
dc.subject	ENERGY PRODUCTION
dc.subject	ENERGY RESEARCH
dc.subject	ENERGY SOURCE
dc.subject	ENERGY TAX
dc.subject	ENERGY TAXES
dc.subject	ENERGY TECHNOLOGIES
dc.subject	ENERGY TECHNOLOGY
dc.subject	ENERGY USAGE
dc.subject	ENERGY USE
dc.subject	ENVIRONMENTAL
dc.subject	ENVIRONMENTAL ECONOMICS
dc.subject	ENVIRONMENTAL LAW
dc.subject	ENVIRONMENTAL POLICY
dc.subject	ENVIRONMENTAL PROTECTION
dc.subject	ENVIRONMENTAL TAXATION
dc.subject	EQUILIBRIUM
dc.subject	EQUITY IMPACTS
dc.subject	EQUITY IMPLICATIONS
dc.subject	EQUIVALENT VARIATION
dc.subject	EXCISE TAXES
dc.subject	EXPENDITURE TAX
dc.subject	EXTERNALITIES
dc.subject	FERROUS METALS
dc.subject	FISHERIES
dc.subject	FISHING
dc.subject	FORESTRY
dc.subject	FOSSIL
dc.subject	FOSSIL FUEL
dc.subject	FOSSIL FUEL EMISSIONS
dc.subject	FOSSIL FUELS
dc.subject	FUEL TAXES
dc.subject	GAS SECTOR
dc.subject	GASOLINE
dc.subject	GENERATION
dc.subject	GLOBAL CLIMATE CHANGE
dc.subject	GLOBAL GREENHOUSE
dc.subject	GLOBAL GREENHOUSE GAS
dc.subject	GLOBAL GREENHOUSE GAS EMISSIONS
dc.subject	GNP
dc.subject	GREENHOUSE
dc.subject	GREENHOUSE EFFECT
dc.subject	GREENHOUSE GAS
dc.subject	GREENHOUSE GAS EMISSIONS
dc.subject	GREENHOUSE GASES
dc.subject	HEAVY RELIANCE
dc.subject	HIGH UNEMPLOYMENT
dc.subject	IMPACTS OF CLIMATE CHANGE
dc.subject	IMPERFECT COMPETITION
dc.subject	IMPORTS
dc.subject	INCOME
dc.subject	INCOME TAX
dc.subject	INELASTIC DEMAND
dc.subject	INPUT TAXES
dc.subject	INPUT USE
dc.subject	INTERMEDIATE GOODS
dc.subject	INTERMEDIATE INPUTS
dc.subject	INTERNATIONAL ENERGY AGENCY
dc.subject	LABOR FORCE
dc.subject	LABOR MARKETS
dc.subject	LEISURE
dc.subject	LEVEL OF EMISSIONS
dc.subject	MACROECONOMICS
dc.subject	MARGINAL ABATEMENT
dc.subject	MARGINAL COST
dc.subject	MARGINAL PRODUCT
dc.subject	MARGINAL TAX RATES
dc.subject	MARKET DISTORTIONS
dc.subject	MOBILITY
dc.subject	MOTOR VEHICLES
dc.subject	NATIONAL INCOME
dc.subject	NATIONAL INCOME ACCOUNTING
dc.subject	NATURAL GAS
dc.subject	NATURAL RESOURCES
dc.subject	OIL
dc.subject	OIL CONSUMPTION
dc.subject	OIL IMPORTS
dc.subject	OIL PRICE
dc.subject	OPTIMAL TAXATION
dc.subject	PER CAPITA INCOME
dc.subject	PETROLEUM
dc.subject	PETROLEUM PRODUCTS
dc.subject	POLLUTION
dc.subject	POLLUTION CONTROL
dc.subject	POWER
dc.subject	POWER SECTOR
dc.subject	PRICE CHANGES
dc.subject	PRICE OF ELECTRICITY
dc.subject	PRICES OF ENERGY
dc.subject	PRIMARY SOURCES
dc.subject	PRODUCERS
dc.subject	PRODUCTION FUNCTIONS
dc.subject	PRODUCTION OF ENERGY
dc.subject	PRODUCTION TECHNOLOGY
dc.subject	PRODUCTIVITY
dc.subject	PRODUCTIVITY GROWTH
dc.subject	PUBLIC EXPENDITURES
dc.subject	PUBLIC GOOD
dc.subject	QUOTAS
dc.subject	REAL WAGES
dc.subject	REBATES
dc.subject	RECYCLING
dc.subject	REDUCTION IN CARBON
dc.subject	REDUCTION IN EMISSIONS
dc.subject	REDUCTION OF EMISSIONS
dc.subject	REFINED PETROLEUM PRODUCTS
dc.subject	REVENUE RECYCLING
dc.subject	SALES TAX
dc.subject	SALES TAXES
dc.subject	SAVINGS
dc.subject	SINGLE TAX
dc.subject	SUBSTITUTION ELASTICITIES
dc.subject	SUSTAINABLE DEVELOPMENT
dc.subject	TAX
dc.subject	TAX CHANGES
dc.subject	TAX POLICIES
dc.subject	TAX POLICY
dc.subject	TAX RATE
dc.subject	TAX RATES
dc.subject	TAX REFORM
dc.subject	TAX REVENUE
dc.subject	TAX SUBSTITUTION
dc.subject	TAXATION
dc.subject	TRANSPORT
dc.subject	TRANSPORT EQUIPMENT
dc.subject	TRANSPORTATION
dc.subject	UNEMPLOYMENT
dc.subject	UTILITIES
dc.subject	VALUE ADDED TAX
dc.subject	VALUE ADDED TAXES
dc.subject	WAGE SUBSIDY
dc.subject	WAGES
dc.subject	WELFARE EFFECTS
dc.subject	WELFARE GAINS
dc.subject	WELFARE LOSS
dc.subject	WELFARE LOSSES
dc.subject	WOOD PRODUCTS
dc.title	Tax Policy to Reduce Carbon Emissions in South Africa
dc.type	Publications & Research :: Policy Research Working Paper
dc.coverage	Africa
dc.coverage	Africa
dc.coverage	Southern Africa