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GTAP Resource #3574

"Low Carbon Development and Carbon Taxes in South Africa"
by Arndt, Channing, Rob Davies, Konstantin Makrelov and James Thurlow

South Africa is the world‟s most carbon-intensive non-oil-producing developing country. However, there is much debate over the appropriateness of policies to reduce carbon emissions. We estimate the carbon intensity of different industries, products and households using adapted multiplier methods based on a supply-use table and accounting for energy price variations. Results confirm the importance of measuring both direct and indirect carbon usage within a framework that captures inter-industry linkages and multi-product supply chains. South African exports are amongst the most carbon-intensive products; labor-intensive and major employing sectors are amongst the least carbon intensive; and middle-income households are the most carbon-intensive consumers. These results suggest that carbon pricing policies would adversely affect export earnings, unless the carbon content of exports is properly rebated, and that these policies should not disproportionately hurt workers or poorer households. Results indicate that seven percent of emissions arise though marketing margins. This implies a key role for transport policy, and suggests that public investments should accompany carbon pricing.

Resource Details (Export Citation) GTAP Keywords
Category: 2011 Conference Paper
Status: Published
By/In: Presented at the 14th Annual Conference on Global Economic Analysis, Venice, Italy
Date: 2011
Version: 1
Created: Thurlow, J. (4/14/2011)
Updated: Thurlow, J. (4/14/2011)
Visits: 1,459
- Climate change policy
- Calibration and parameter estimation
- Africa (Southern)

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