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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 and Margaret Mabugu

The Energy Journal, 2006, vol. Volume 27, issue Number 2, 113-142

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 Ð decreasing emissions, increasing GDP, and decreasing poverty Ð when any one of the environmental taxes is recycled through a reduction in food prices.

JEL-codes: F0 (search for similar items in EconPapers)
Date: 2006
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