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An Integrated Approach to Modelling Energy Policy in South Africa: Evaluating Carbon Taxes and Electricity Import Restrictions

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Listed:
  • Channing Arndt
  • Rob Davies
  • Sherwin Gabriel
  • Konstantin Makrelov
  • Bruno Merven
  • Faaiqa Salie
  • James Thurlow

Abstract

We link a bottom-up energy sector model to a recursive dynamic computable general equilibrium model of South Africa in order to examine two of the country's main energy policy considerations: (i) the introduction of a carbon tax and (ii) liberalization of import supply restrictions in order to exploit regional hydropower potential. Our results suggest substantial reductions in the country's greenhouse gas emissions when these two policy changes are jointly implemented (relative to business-as-usual baseline scenario).

Suggested Citation

  • Channing Arndt & Rob Davies & Sherwin Gabriel & Konstantin Makrelov & Bruno Merven & Faaiqa Salie & James Thurlow, 2014. "An Integrated Approach to Modelling Energy Policy in South Africa: Evaluating Carbon Taxes and Electricity Import Restrictions," WIDER Working Paper Series wp-2014-135, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2014-135
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    File URL: https://www.wider.unu.edu/sites/default/files/wp2014-135.pdf
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    References listed on IDEAS

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    1. Alton, Theresa & Arndt, Channing & Davies, Rob & Hartley, Faaiqa & Makrelov, Konstantin & Thurlow, James & Ubogu, Dumebi, 2014. "Introducing carbon taxes in South Africa," Applied Energy, Elsevier, vol. 116(C), pages 344-354.
    2. -, 2009. "The economics of climate change," Sede Subregional de la CEPAL para el Caribe (Estudios e Investigaciones) 38679, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    3. Böhringer, Christoph & Rutherford, Thomos F., 2009. "Integrated assessment of energy policies: Decomposing top-down and bottom-up," Journal of Economic Dynamics and Control, Elsevier, vol. 33(9), pages 1648-1661, September.
    4. Lanz, Bruno & Rausch, Sebastian, 2011. "General equilibrium, electricity generation technologies and the cost of carbon abatement: A structural sensitivity analysis," Energy Economics, Elsevier, vol. 33(5), pages 1035-1047, September.
    5. Inglesi, Roula, 2010. "Aggregate electricity demand in South Africa: Conditional forecasts to 2030," Applied Energy, Elsevier, vol. 87(1), pages 197-204, January.
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    Cited by:

    1. Bruno Merven & Channing Arndt & Harald Winkler, 2017. "The development of a linked modelling framework for analysing the socioeconomic impacts of energy and climate policies in South Africa," WIDER Working Paper Series 040, World Institute for Development Economic Research (UNU-WIDER).
    2. Bruno Merven & Channing Arndt & Harald Winkler, 2017. "The development of a linked modelling framework for analysing the socioeconomic impacts of energy and climate policies in South Africa," WIDER Working Paper Series wp-2017-40, World Institute for Development Economic Research (UNU-WIDER).

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