scholarly journals Reducing energy poverty through carbon tax revenues in South Africa

2017 ◽  
Vol 28 (3) ◽  
pp. 12 ◽  
Author(s):  
Harald Winkler
Keyword(s):  
South Africa ◽  
Indoor Air Pollution ◽  
Carbon Tax ◽  
Tax Revenue ◽  
Liquefied Petroleum Gas ◽  
Carbon Taxes ◽  
Energy Poverty ◽  
Tax Revenues ◽  
Poor Households ◽  
Rooftop Solar

How much can poverty be reduced through carbon tax revenue? This study analyses specific programmes, with carbon taxes generating revenues and equivalent spending on programmes to reduce energy poverty. The twin challenges of development and climate change could be addressed in this way in South Africa. A simple spreadsheet model was used to estimate revenue available from a carbon tax, given different tax rates and emission projections. Four programmes to reduce energy poverty were quantified: electrification, extended free basic energy, scaling-up sustainable housing, and subsidising rooftop solar for poor households. Matching carbon revenue with equivalent expenditure, the study found that applying all carbon revenue to a single programme could fund the national budget for electrification. Hundreds of thousands, and up to tens of millions, of households could receive free energy in the form of 5 kg of liquefied petroleum gas every month, as well as better houses that are warmer in winter and with fewer health impacts from indoor air pollution. Carbon revenues could fund at least a few hundred thousand improved homes, or subsidies for at least 100 000 rooftop solar systems per year to poor households. Institutional and other constraints would have to be addressed. Carbon revenue could fully fund all four programmes combined into an integrated strategy, in three of the four scenarios. The results suggested that full funding could be available from 2019 or from 2025, dependent on carbon tax revenue scenario. Energy poverty can be reduced by expenditure of carbon tax revenues.

Are Carbon Taxes Regressive in India? Evidence from NSSO Data

2019 ◽  
Vol 67 (1-2) ◽  
pp. 30-44
Author(s):  
Aaqib Ahmad Bhat ◽  
Prajna Paramita Mishra
Keyword(s):  
Energy Use ◽  
Carbon Tax ◽  
Electricity Consumption ◽  
National Sample ◽  
Sample Survey ◽  
Liquefied Petroleum Gas ◽  
Carbon Taxes ◽  
Carbon Pricing ◽  
Lump Sum ◽  
Poor Households

Carbon tax, being less costly in achieving a given abatement target, has been highly recommended by economists and international organisations. However, distributional concerns against the carbon tax has been a matter of concern in the domain of public policy. This article tries to analyse the distributional impact of Carbon tax in India by using National Sample Survey Office (NSSO) data. The results of the study indicate that carbon pricing seems to hit the lower-expenditure households by a greater proportion than the rich elites. The severity was found to be greater for the rural households than the urban households. Strong regressivity was found in the energy use for cooking and lighting. However, for transportation, the results indicate mild progressivity. Among the various energy fuels, households using coal, liquefied petroleum gas (LPG), kerosene, firewood and dung cake for cooking and lighting were found to be hit hard by carbon pricing. In contrast, electricity consumption was found to be distributionally neutral. Petrol and diesel use for transportation were found to be progressive. The study advocates that regressivity of carbon tax should be taken into account by way of targeted revenue recycling measures like lump-sum transfers among poor households and cut in other distortionary taxes.

What to Do with $200 Billion: Give It Back

2019 ◽  
pp. 87-98
Author(s):  
Gilbert E. Metcalf
Keyword(s):  
Tax Reform ◽  
Carbon Tax ◽  
Tax Revenue ◽  
Common Belief ◽  
Tax System ◽  
System A ◽  
Poor Households ◽  
Fairness And Efficiency

This chapter discusses how economists measure the burden of a carbon tax—which households have less spending power because of the tax. It also discusses fairness in the tax code and how the revenue, which can be substantial, from a carbon tax can be returned to households and businesses in ways that enhance the fairness and efficiency of the overall tax system. A common belief is that a carbon tax is regressive—that it disproportionately burdens poor households. Studies discussed in this chapter refute this belief and argue that judicious use of the carbon tax revenue can make a carbon tax reform (tax and return of the revenue) even more progressive.

scholarly journals U.S. CARBON TAX SCENARIOS AND BIOENERGY

2018 ◽  
Vol 09 (01) ◽  
pp. 1840010 ◽  
Author(s):  
RONALD D. SANDS
Keyword(s):  
Carbon Tax ◽  
Tax Revenue ◽  
Welfare Costs ◽  
Revenue Recycling ◽  
Tax Revenues ◽  
Lump Sum ◽  
Labor Tax ◽  
Capital Tax ◽  
Emf Model ◽  
And Storage

This paper documents application of the Future Agricultural Resources Model (FARM) to stylized carbon tax scenarios specified by the Stanford Energy Modeling Forum (EMF). Model results show that the method of tax revenue recycling makes a difference. Either labor-tax, or capital-tax, recycling can reduce the welfare cost of a carbon tax policy relative to lump sum recycling. Of the two tax recycling options, reducing capital taxes provides the greater reduction in welfare costs. However, carbon tax revenues decline with stringent carbon dioxide (CO2) emission targets and the availability of a negative-emissions technology such as bio-electricity with CO2 capture and storage (BECCS). As BECCS expands, net carbon tax revenues peak and decline due to an offsetting subsidy for carbon sequestration, limiting the potential for labor- or capital-tax recycling to reduce welfare costs of a climate policy.

scholarly journals The economic and environmental effects of a carbon tax in South Africa: A dynamic CGE modelling approach

2016 ◽  
Vol 19 (5) ◽  
pp. 714-732 ◽  
Author(s):  
Jan Van Heerden ◽  
James Blignaut ◽  
Heinrich Bohlmann ◽  
Anton Cartwright ◽  
Nicci Diederichs ◽  
...  
Keyword(s):  
South Africa ◽  
Environmental Effects ◽  
Computable General Equilibrium ◽  
Carbon Tax ◽  
Negative Impact ◽  
Ghg Emissions ◽  
Tax Revenue ◽  
Emissions Reductions ◽  
Cge Modelling ◽  
Dynamic Cge

The economic and environmental effects of a carbon tax in South Africa: A dynamic cge modelling approachSouth Africa’s National Treasury released its Carbon Tax Policy Paper in May 2013. The paper proposed a R120/tCO2-equiv. levy on coal, gas and petroleum fuels. Here, we model the possible impacts of such a tax on the South African economy using the computable general equilibrium (CGE) 53-sector model of the University of Pretoria’s Department of Economics. The model shows that the carbon tax has the capacity to decrease South Africa’s greenhouse gas (GHG) emissions by between 1 900MtCO2-equiv. and 2 300MtCO2-equiv. between 2016 and 2035. The extent of emissions reductions is most sensitive to the rate at which tax exemptions are removed. Recycling of carbon tax revenue reduces the extent of emissions reductions due to the fact that economic growth is supported. The manner in which carbon tax revenue is recycled back into the economy is therefore important in terms of the extent of emissions reductions achieved, but not as significant as the influence of different exemption schedules. The model shows the carbon tax to have a net negative impact on South Africa’s gross domestic product (GDP) relative to the baseline under all exemption regimes and all revenue recycling options assessed. The negative impact of the carbon tax on GDP is, however, greatly reduced by the manner in which the tax revenue is recycled. Recycling in the form of a production subsidy for all industries results in the lowest negative impact on GDP.

scholarly journals Pajak Kekayaan, Alternatif Sumber Penerimaan Pajak di Indonesia Merespons Pandemi Covid-19

2022 ◽  
Vol 14 (1) ◽  
pp. 29-44
Author(s):  
Setiadi Alim Lim
Keyword(s):  
Carbon Tax ◽  
Tax Revenue ◽  
Tax Revenues ◽  
Long Time ◽  
Wealth Tax ◽  
Net Assets ◽  
The Rich ◽  
The Government ◽  
Using Data ◽  
First Time

In response to the decline in tax revenue due to the Covid-19 pandemic, the government has issued a regulation to collect a new tax, namely the Carbon Tax through Law Number 7 of 2021 concerning Harmonization of Tax Regulations. Because this Carbon Tax is being implemented for the first time in Indonesia and its calculation is also not simple, it is estimated that the successful collection of it will take a long time. Whereas the need to explore new sources of tax revenue is needed at this time in the short term to cope with sharply increasing expenditures in order to overcome the medical and social impacts of the Covid-19 pandemic. The government could consider implementing a Wealth Tax in addition to existing taxes including the Carbon Tax. Wealth Tax in addition to increasing tax revenues can also be used as a means of redistribution of wealth in order to reduce the wide gap between the rich and the poor. The proposed Wealth Tax is a Wealth Tax that is levied only once, intended for individuals, with a threshold as well as Non-Taxable Wealth (NTW) of Rp21,000,000,000.00 for unmarried taxpayers and Rp22,500,000,000.00 for marriage taxpayers, using progressive rates of 0.2%, 0.4%, 0.6%, and 0.75%, and can be repaid in installments for 5 years. The basis for imposition of Wealth Tax is net assets, namely the total assets minus the total liabilities reported in the Annual Income Tax Return (SPT) of the previous year's individual taxpayers minus the Non-Taxable Wealth (NTW). Using data on the wealth of the Indonesian population in 2018, it is estimated that thecollection of this Wealth Tax can generate additional tax revenues of around 0.83% of the Gross Domestic Product in 2020.

scholarly journals Analysis of the economic implications of a carbon tax

2011 ◽  
Vol 22 (1) ◽  
pp. 55-68 ◽  
Author(s):  
Harald Winkler ◽  
Andrew Marquard
Keyword(s):  
South Africa ◽  
South African ◽  
Carbon Tax ◽  
Ghg Emissions ◽  
Net Benefit ◽  
Economic Implications ◽  
Strategic Option ◽  
Poor Households ◽  
Food Subsidies

A carbon tax should be considered among the range of instruments available to the South African government, economy and society, as part of a broad portfolio of mitigation actions. A carbon tax was one of the most effective wedges or mitigation options analysed for the Long-term mitigation scenarios (LTMS) for South Africa. The LTMS strategic option ‘Using the market’ reduced emissions roughly as required by Science, for several decades. The LTMS research indicated that the effectiveness increases, up to certain tax levels. South Africa might consider a tax starting around R100-200 / t CO2eq, escalating in future. Our paper presents results on research on a carbon tax in South Africa conducted in 2008 and was presented at the Climate Change Summit 2009. The efficiency with which a carbon tax achieves the goal of reducing GHG emissions depends on responsiveness and substitutability. This is shown more fully on the supply-side, while further work will be needed to fully understand the response to a carbon tax on the demand side. Careful design of a carbon tax (or other economic instruments considered) will be important to ensure that it is effective in meeting its objective – reducing GHG emissions. We propose a price discovery and adjustment mechanism that sets a band around the desired ‘peak, plateau and decline’ trajectory. Equity demands that poor households, in particular, be shielded from any burden. Off-setting incentives, such as food subsidies or reduced VAT on basic goods, should in finance measure that which will ensure that the package of tax and incentives is a net benefit to the poor – and not to treat the tax as a revenue-raising instrument. With appropriate design, a carbon tax can be a powerful instrument of mitigation in South Africa, and at the same time, contribute to socio-economic objectives.

scholarly journals Behavior Patterns, Energy Consumption and Comfort during COVID-19 Lockdown Related to Home Features, Socioeconomic Factors and Energy Poverty in Madrid

2021 ◽  
Vol 13 (11) ◽  
pp. 5949
Author(s):  
Teresa Cuerdo-Vilches ◽  
Miguel Ángel Navas-Martín ◽  
Ignacio Oteiza
Keyword(s):  
Energy Consumption ◽  
Thermal Adaptation ◽  
Vulnerability Index ◽  
General Increase ◽  
Energy Poverty ◽  
Poor Households ◽  
Global Spread ◽  
Containment Measures ◽  
The Face ◽  
Future Harm

During spring 2020, the world was shocked at the imminent global spread of SARS-CoV-2, resorting to measures such as domestic confinement. This meant the reconfiguration of life in an unusual space; the home. However, not all households experienced it in the same way; many of them were vulnerable. A general increase in energy consumption and discomfort in many cases, led these families to suffer the ravages of confinement. This study analyzes the energy and comfort situation for the Madrid (Spain) population, according to the configuration of the homes, the characteristics of the dwellings, the vulnerability index by district, and energy poverty (measured with the 10% threshold of energy expenditure of home incomes). The results show a greater exposure, in confinement, of vulnerable and energy-poor households to scenarios of discomfort in the home, to which they could not respond, while energy consumption inevitably increased. Driven by need, energy-poor homes applied certain saving strategies, mainly resorting to thermal adaptation with clothing. This study shows the risk these households experienced in the face of an extreme situation, and invites reflection on preventive and containment measures that aim to avoid harming the disadvantaged in the future; harm that would also entail serious consequences on the health of their cohabitants.

scholarly journals An Evaluative Study of Criminalistics: A Case of South African Counterfeiting and Knock-Off Menace

2021 ◽  
Vol 4 (2) ◽  
pp. 45-60
Author(s):  
Godfrey Thenga
Keyword(s):  
South Africa ◽  
South African ◽  
Human Life ◽  
Health Hazard ◽  
Capital Flight ◽  
Tax Revenue ◽  
African Countries ◽  
Counterfeit Goods ◽  
Evaluative Study ◽  
The World

Counterfeit goods are a health hazard to human life, environment and business. More so as the goods destroy the viability of legitimate businesses across the world. Counterfeit goods are characterized as a threat to the financial viability of legitimate businesses and has a dire impact on the tax revenue of countries, necessitating its effective and efficient policing for the financial wellbeing of countries. If not well managed, counterfeit goods could lead to unemployment, disinvestment and capital flight in countries. The available evidence reveals that even though counterfeit goods has dire consequences for the economic wellbeing of countries, its penalties in most African countries are less severe in comparison to penalties for other crimes. The sight of counterfeit goods in many places, such as on busy street corners and transportation terminals in the Southern parts of Africa, attests to its prevalence in the continent. Especially in South Africa as the country has become a transit point for contrabands. Post 1994, South Africa opened its borders to the world of branded and protected goods and this enabled rogue people to trade in counterfeit goods. Effective policing is hindered by the use of sophisticated skills and expertise that leads to counterfeit goods resembling genuine goods. Moreover, in South Africa, the problem persists despite the promulgation of the Counterfeit Goods Act 37 of 1997, thus questioning the effectiveness of the policing strategies in use to quell the problem.

Sign in / Sign up

Export Citation Format

Share Document