The dividends from a revenue neutral tax on coal in South Africa

Wet, Theuns J. De; Heerden, Jan van

doi:10.4102/sajems.v6i3.3301

Cited by 3 publications

(3 citation statements)

References 11 publications

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“…For the purpose of this study, we split the energy intensive sectors further to arrive at 39 sectors. The elasticities used for the CES functions in the model have been taken from De Wet (2003), and are summarized in Appendix Table A3.…”

Section: The Modelmentioning

confidence: 99%

Searching for Triple Dividends in South Africa: Fighting CO2 pollution and poverty while promoting growth

Heerden¹,

Gerlagh²,

Blignaut³

et al. 2006

The Energy Journal

128

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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.

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Section: The Modelmentioning

confidence: 99%

Searching for Triple Dividends in South Africa: Fighting CO2 pollution and poverty while promoting growth

Heerden¹,

Gerlagh²,

Blignaut³

et al. 2006

The Energy Journal

128

View full text Add to dashboard Cite

show abstract

“…Energy issues have also been a major area of focus in the growing application of CGEs (see e.g. Alton et al 2012;Devarajan et al 2009;Altman et al 2008;Cameron & Naudé 2008;Van Heerden et al 2006;Van Heerden et al 2008;and De Wet & Van Heerden 2003). Furthermore, after the 2008 energy (load-shedding) crisis, energy issues have started receiving much more focus.…”

Section: Broader Economic Implicationsmentioning

confidence: 99%

A comparative assessment of the economic benefits from shale gas extraction in the Karoo, South Africa

Wait

Rossouw

2019

SABR

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It has been said that the development of a shale gas industry could be a ‘game changer’ for South Africa. Proponents of shale gas tend to emphasise the benefits, whilst opponents emphasise the environmental costs. This paper is an attempt to inform the policy debate by highlighting both the potential economic benefits and environmental costs. To date, the Econometrix report (published in 2012) provides the only estimate of the economic impacts that may emanate from developing the Karoo’s shale gas. The report uses a Keynesian multiplier model to estimate the impacts. The analysis performed in this paper estimates the economic impacts using a Computable General Equilibrium (CGE) modelling approach, and the results are compared to the findings of the Econometrix report. In doing so, this paper provides an expanded view of the potential economic impact. Accordingly, this paper provides a number of findings on the estimated economic impact of shale gas extraction – based on the application of an economy-wide impact modelling methodology – which should be of interest to both opponents and proponents of the shale gas industry. By including all possible results, such as a boost in public sector jobs and an analysis of the impact on consumer prices and jobs in other sectors, this paper expands the current understanding of the likely impact of shale gas extraction in the Karoo of South Africa.

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“…Energy issues however, have not yet been a major area of focus in the growing application of A GE's. At the time of writing we were aware of a few formal studies into energy issues using an AGE model in South Africa namely by Alt man et al [1], Cameron and Naudé [6], Van Heerden et al [37] and De Wet and Van Heerden [10] -the third and last of these concentrated on energy-environment interactions and not on supply and price shocks in the sector, while the first and second specifically focused on supply shocks as a result of the 2008 electricity load shedding experienced in South Africa. Our search was not exhaustive and we are aware that after the 2008 crisis energy issues have started receiving a lot more focus.…”

Section: Informing On the Broader Economic Implicationsmentioning

confidence: 99%

Modelling the Economic Impact of Electricity Tariff Increases on Eskom’s Top Customer Segment

Cameron¹,

Rossouw²

2012

IJEE

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With the rapid and sharp rise in energy prices in South Africa, the cost of energy is becoming a factor that cannot be ignored in either energy-intensive or-dependent industries. In the energy-intensive industries, for examp le, this immed iate and direct perspective can result in the incurring of costs that are greatly magnified by the large amount of power consumed. Few would therefore deny the importance of electricity as an essential input to production and to economic activity in general. Based on the fact that changes in electricity prices impact on basically each and every individual in South Africa, and mo re specifically on an energy utility provider's core business, it is important to determine its effect on each of these entities. The develop ment of an analytical Cost of Production Tipping Po int (CoPTP) model, combined with the economy-wide modelling capabilit ies of an Applied General Equilib riu m (A GE) model for South Africa, will help to determine what the potential impact would be, given the market forces at play at any particular instance. The aim of this paper is therefore to help develop an understanding of the impact of increasing electricity prices on an energy utility provider's main assets-its customers, by determining the broader potential economic impact on the South African economy. The value of this framewo rk is therefore that it will provide strategic context, will allow for a better understanding of the influence of electricity price increases on both energy-intensive and-dependent industries, while also informing key stakeholders regard ing imp lications of potential changes in customer operational environ ments to an energy utility provider in terms of potential revenue risk implications, as well as to the rest of industry and the broader market in South Africa due to potential second round feedback effects.

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The dividends from a revenue neutral tax on coal in South Africa

Cited by 3 publications

References 11 publications

Searching for Triple Dividends in South Africa: Fighting CO2 pollution and poverty while promoting growth

Searching for Triple Dividends in South Africa: Fighting CO2 pollution and poverty while promoting growth

A comparative assessment of the economic benefits from shale gas extraction in the Karoo, South Africa

Modelling the Economic Impact of Electricity Tariff Increases on Eskom’s Top Customer Segment

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