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Journal Article: Fighting CO2 and poverty while promoting growth: Searching for triple dividends in South Africa? in: The Energy Journal, 27(2):113-141.

Author(s) Van Heerden, J.H., Gerlagh, R. Blignaut, J.N., Hess, S., Mabugu, R., Chitiga, M. and De Wet, T
Date 2007-12-11
Theme(s) Urban, Policy and Trade, Climate
Method(s) Regression Analysis, Policy Instruments, Economic Modelling
Serie(s) Journal Articles


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 capitol, (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.


The Energy Journal


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