Carbon Tax and Environmental Quality in South Africa
Carbon taxes are considered an important environmental policy instrument for the improvement of environment quality in developing countries.Despite these premises, the implementation of the carbon tax policy in developing countries has lagged behind. The aim of this study is to analyse how carbon ta...
Saved in:
| Main Authors: | , , , |
|---|---|
| Other Authors: | |
| Format: | research article |
| Language: | English |
| Published: |
EconJournals
2023
|
| Subjects: | |
| Online Access: | https://cris.library.msu.ac.zw//handle/11408/5571 https://doi.org/10.32479/ijeep.13474 |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| _version_ | 1779905223692648448 |
|---|---|
| author | Sanderson Abel Julius Mukarati Leward Jeke Pierre Le Roux |
| author2 | Department of Agricultural Economics and Development, Midlands State University, Zimbabwe |
| author_facet | Department of Agricultural Economics and Development, Midlands State University, Zimbabwe Sanderson Abel Julius Mukarati Leward Jeke Pierre Le Roux |
| author_sort | Sanderson Abel |
| collection | DSpace |
| description | Carbon taxes are considered an important environmental policy instrument for the improvement of environment quality in developing countries.Despite these premises, the implementation of the carbon tax policy in developing countries has lagged behind. The aim of this study is to analyse how carbon tax influence environmental quality and economic performance in South Africa. Such a country-oriented inquiry is envisaged to have some positive policy implications for the South African economy and other developing nations. The analysis was conducted using a static computable
general equilibrium (CGE) model of South Africa, which was expected to capture the observed structure of South Africa’s economy. Furthermore, the parameters of the CGE equations were calibrated to observed data from a social accounting matrix (SAM) for 2015. The results show that environmental tax has negative effects on gross domestic product with the energy sectors which are generally the most polluting sectors suffering higher output losses due to the environmental tax. Household consumption is significant reduced by 2.34% due to the reduction in emissions as a result of carbon
tax policy. According to the study findings, policy-makers should consider an initial 5% carbon tax policy which may results in achieving reasonably good environmental quality without losing on investment, fixed capital investment and government revenue. |
| format | research article |
| id | ir-11408-5571 |
| institution | My University |
| language | English |
| publishDate | 2023 |
| publisher | EconJournals |
| record_format | dspace |
| spelling | ir-11408-55712023-05-02T11:24:36Z Carbon Tax and Environmental Quality in South Africa Sanderson Abel Julius Mukarati Leward Jeke Pierre Le Roux Department of Agricultural Economics and Development, Midlands State University, Zimbabwe Department of Economics, Nelson Mandela University, Port Elizabeth, South Africa Department of Economics, Nelson Mandela University, Port Elizabeth, South Africa Department of Economics, Nelson Mandela University, Port Elizabeth, South Africa, GHG Emissions CO2 Emission CGE Modelling Economic Growth South Africa Carbon taxes are considered an important environmental policy instrument for the improvement of environment quality in developing countries.Despite these premises, the implementation of the carbon tax policy in developing countries has lagged behind. The aim of this study is to analyse how carbon tax influence environmental quality and economic performance in South Africa. Such a country-oriented inquiry is envisaged to have some positive policy implications for the South African economy and other developing nations. The analysis was conducted using a static computable general equilibrium (CGE) model of South Africa, which was expected to capture the observed structure of South Africa’s economy. Furthermore, the parameters of the CGE equations were calibrated to observed data from a social accounting matrix (SAM) for 2015. The results show that environmental tax has negative effects on gross domestic product with the energy sectors which are generally the most polluting sectors suffering higher output losses due to the environmental tax. Household consumption is significant reduced by 2.34% due to the reduction in emissions as a result of carbon tax policy. According to the study findings, policy-makers should consider an initial 5% carbon tax policy which may results in achieving reasonably good environmental quality without losing on investment, fixed capital investment and government revenue. 13 2 484 488 2023-05-02T11:24:36Z 2023-05-02T11:24:36Z 2023-03-21 research article https://cris.library.msu.ac.zw//handle/11408/5571 https://doi.org/10.32479/ijeep.13474 en International Journal of Energy Economics and Policy 2146-4553 open EconJournals |
| spellingShingle | GHG Emissions CO2 Emission CGE Modelling Economic Growth South Africa Sanderson Abel Julius Mukarati Leward Jeke Pierre Le Roux Carbon Tax and Environmental Quality in South Africa |
| title | Carbon Tax and Environmental Quality in South Africa |
| title_full | Carbon Tax and Environmental Quality in South Africa |
| title_fullStr | Carbon Tax and Environmental Quality in South Africa |
| title_full_unstemmed | Carbon Tax and Environmental Quality in South Africa |
| title_short | Carbon Tax and Environmental Quality in South Africa |
| title_sort | carbon tax and environmental quality in south africa |
| topic | GHG Emissions CO2 Emission CGE Modelling Economic Growth South Africa |
| url | https://cris.library.msu.ac.zw//handle/11408/5571 https://doi.org/10.32479/ijeep.13474 |
| work_keys_str_mv | AT sandersonabel carbontaxandenvironmentalqualityinsouthafrica AT juliusmukarati carbontaxandenvironmentalqualityinsouthafrica AT lewardjeke carbontaxandenvironmentalqualityinsouthafrica AT pierreleroux carbontaxandenvironmentalqualityinsouthafrica |