- Jun 3, 2019 8:46 pm GMT
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This might be an interesting read for policy wonks. South Africa began taxing carbon pollution yesterday. The interesting thing about SA's move is that it is a developing economy that needs higher than average rates of growth in order to transition to becoming a developed one.
Carbon tax becomes a drag on a country's economy and reduces GDP or welfare, according to a World Bank 2018 paper on the topic. "Almost all studies have not accounted for the benefits of avoiding climate change damage” because of the “complexity and uncertainties in estimating the benefits,” the paper states. Regardless, the South African government is pressing ahead with the measure and expects to raise R1.4 trillion in revenue from the tax.