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

Heerden, Jan van; Gerlagh, Reyer; Blignaut, James Nelson; Horridge, Mark; Hess, Sebastiaan; Mabugu, Ramos; Chitiga-Mabugu, Margaret

doi:10.5547/issn0195-6574-ej-vol27-no2-7

Cited by 127 publications

(72 citation statements)

References 38 publications

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“…Van Heerden et al [2006] reach similar conclusions for energy use, but the model, parameters, and data are almost identical. The literature review and the simulations clearly show that double and triple dividends can had under particular conditions only.…”

Section: Resultssupporting

confidence: 60%

“…We split the energy and water intensive sectors further to arrive at a total of 39 sectors. (Triple dividends for energy taxes are discussed in a related paper [van Heerden et al, 2006].) The official SAM has only one sector for all agriculture, and we split it into seven subsectors to be able to determine exactly which water policies would render the best results.…”

Section: Model and Datamentioning

confidence: 99%

“…The distinction between skilled and unskilled labor supply reflects the South African labor market realistically and allows for investigating the effect of certain policies on employment of unskilled labor. The supply of land is also assumed to be inelastic [Van Heerden et al, 2006].…”

Section: Model and Datamentioning

confidence: 99%

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Triple dividends of water consumption charges in South Africa

Letsoalo

Blignaut

Wet

et al. 2007

Water Resources Research

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[1] The South African government is exploring ways to address water scarcity problems by introducing a water resource management charge on the quantity of water used in sectors such as irrigated agriculture, mining, and forestry. It is expected that a more efficient water allocation, lower use, and a positive impact on poverty can be achieved. This paper reports on the validity of these claims by applying a computable general equilibrium model to analyze the triple dividend of water consumption charges in South Africa: reduced water use, more rapid economic growth, and a more equal income distribution. It is shown that an appropriate budget-neutral combination of water charges, particularly on irrigated agriculture and coal mining, and reduced indirect taxes, particularly on food, would yield triple dividends, that is, less water use, more growth, and less poverty.

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Section: Resultssupporting

confidence: 60%

Section: Model and Datamentioning

confidence: 99%

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Triple dividends of water consumption charges in South Africa

Letsoalo

Blignaut

Wet

et al. 2007

Water Resources Research

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“…There seems to be the option for a triple dividend by carbon taxes if the poor receive assistance to afford necessities such as food. 60 An MS-IO study examined the distributional impact of increased oil prices in South Africa. 61 An increase in heating fuels is shown to be regressive and affects the poor most severely.…”

Section: Detailed Results For Developing Countriesmentioning

confidence: 99%

Social Implications of Green Growth Policies from the Perspective of Energy Sector Reform and its Impact on Households

Heindl,

LLschel

2015

SSRN Journal

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Die Dis cus si on Pape rs die nen einer mög lichst schnel len Ver brei tung von neue ren For schungs arbei ten des ZEW. Die Bei trä ge lie gen in allei ni ger Ver ant wor tung der Auto ren und stel len nicht not wen di ger wei se die Mei nung des ZEW dar.Dis cus si on Papers are inten ded to make results of ZEW research prompt ly avai la ble to other eco no mists in order to encou ra ge dis cus si on and sug gesti ons for revi si ons. The aut hors are sole ly respon si ble for the con tents which do not neces sa ri ly repre sent the opi ni on of the ZEW. Social Implications of Green Growth Policies from the Perspective of Energy Sector Reform and its Impact on Households Andreas Löschel University of Münster February 2015 This paper is also available as: OECD Issue Note -Social Implications of Green Growth Policies from the Perspective of Energy Sector Reform and its Impact on Households-AbstractThis paper reviews the literature on distributional effects of energy and carbon taxation with focus on microsimulation models. Most studies find that direct energy and carbon taxation tends to be regressive. Regressive effects occur mostly with respect to taxation of electricity or space heating. Taxation of transportation fuels show less regressive, neutral, or even progressive effects. Adequate revenue recycling often allows for neutralisation or full elimination of regressive effects so that energy and carbon tax reforms can be progressive. Some studies find evidence for the existence of a double dividend. There seems to be an efficiency-equity trade-off in revenue recycling, i.e. whether to foster growth or to assist low-income households. While a large number of studies on advanced economies are available, there clearly is a gap with regard to evidence for developing countries. Another gap relates to the lack of documentation on the challenges of incorporating macroeconomic models and long-term modelling perspectives in microsimulation. Both aspects can be of great importance with respect to the design of green growth policies. Thoughtful incorporation of social considerations, including aspects of poverty in modelling approaches could enhance the existing instruments of exante policy assessments since poverty is a tangible concept which is well-known, understandable, and openly observable for citizens and policy makers.

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“…Given the diffuse nature of agricultural emissions, how reductions targets are to be achieved is left as an internal matter in each member state (European Parliament, 2009a) and is beyond the focus of this research. Some CGE applications (Labandeira & Rodríguez, 2006;Van Heerden et al, 2006;Labandeira et al, 2009b) report limited impacts on agriculture, but only account for emissions controls on combustion, whilst not accounting for agriculture's diffuse emissions. One exception is a study assessing the Dutch economy by Dellink et al (2004).…”

Section: Introductionmentioning

confidence: 99%

El control de las emisiones de gases de efecto invernadero en España: costes para los sectores agrarios

Bourne¹,

Philippidis²,

Feijoo³

2012

Span. j. agric. res.

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Employing a recursive dynamic computable general equilibrium (CGE) model of the Spanish economy, this study explicitly aims to characterise the potential impact of Kyoto and European Union environmental policy targets on specific agricultural activities up to 2020. The model code is modified to characterise the emissions trading scheme (ETS), emissions quotas and carbon taxes, whilst emissions reductions are applied to all six registered greenhouse gases (GHGs). Compared to a 'business-as-usual' baseline scenario, by 2020, GDP and employment fall 2.1% and 2.4%, respectively, whilst the retail price index rises 3.4%. In agriculture, the indices of output (4.3% fall), and supply price (7.7% rise) perform relatively worse, whilst there is a concomitant cumulative fall in aggregate farm incomes of €1,510 million by 2020. The more notable impact in agriculture is attributed to its relatively higher emissions intensity. Consequently, we record an agricultural marginal abatement cost estimate of €86 ton -1 of CO 2 equivalent by 2020, which is consistent with other estimates in the literature. In addition, we find that the optimal mix of emissions reductions across specific agricultural sectors is a function of the degree of substitutability of their emitting activities. In light of estimated income losses within the strategically important farm sector, a final simulation contemplates an 'agricultural cost-neutral' emissions reduction policy akin to a cross compliance payment between 2013 and 2020. This is found to reduce food price rises, whilst altering the optimum mix of agricultural emissions reductions across specific agricultural activities.Additional key words: agriculture; computable general equilibrium; European Union Climate & Energy Package; Kyoto protocol. Resumen El control de las emisiones de gases de efecto invernadero en España: costes para los sectores agrariosEmpleando un modelo dinámico recursivo de equilibrio general computable (EGC) de la economía española, este estudio analiza el impacto de las políticas medioambientales de Kioto y de la Unión Europea (el acuerdo '20/20/20'), sobre distintas actividades agrarias hasta 2020. En comparación con el escenario de referencia, se pronostican caídas en el PIB y el empleo de un 2,1% y 2,4%, respectivamente, en 2020, mientras que el índice de precios al consumo sube un 3,4%. En agricultura, el índice de producción (que cae un 4,3%) y el de precios (aumenta un 7,7%), empeoran y además los ingresos acumulados de los agricultores bajan 1.510 millones de euros en 2020. El impacto más acusado en el sector agrario se atribuye a la mayor intensidad de sus emisiones donde se estima un coste marginal de reducción de 86 € t -1 de CO 2 equivalente para 2020, lo cual es consistente con las estimaciones existentes en la bibliografía. Además se observa que la combinación óptima de reducción de emisiones en los diferentes sectores agrarios depende del grado de sustitución de las actividades emisoras. A la vista de las pérdidas de ingresos observadas en el sector ag...

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

Cited by 127 publications

References 38 publications

Triple dividends of water consumption charges in South Africa

Triple dividends of water consumption charges in South Africa

Social Implications of Green Growth Policies from the Perspective of Energy Sector Reform and its Impact on Households

El control de las emisiones de gases de efecto invernadero en España: costes para los sectores agrarios

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