Searching for Triple Dividends in South Africa: Fighting CO2 Pollution and Poverty while Promoting Growth

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Van Heerden, Jan, Gerlagh, Reyer, Blignaut, James Nelson, Horridge, Mark, Hess, Sebastiaan, Mabugu, Ramos and Mabugu, Margaret (2006) Searching for Triple Dividends in South Africa: Fighting CO2 Pollution and Poverty while Promoting Growth. Energy Journal, 27 (2). pp. 113-142. ISSN 0195-6574 (print) 1944-9089 (online)


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. Energy Specializations: Energy and the Economy - Energy Poverty, Energy and the Environment - Climate Change and Greenhouse Gases, Energy and the Environment - Policy and Regulation.

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Item type Article
DOI 10.5547/ISSN0195-6574-EJ-Vol27-No2-7
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Subjects Historical > FOR Classification > 0502 Environmental Science and Management
Historical > FOR Classification > 1402 Applied Economics
Current > Division/Research > Centre of Policy Studies (CoPS)
Keywords Air pollution, CO2, poverty, double-dividend, CGE, environmental tax, South Africa
Citations in Scopus 90 - View on Scopus
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