Estimating effective carbon prices in South Africa

Estimating effective carbon prices in South Africa

Client: OECD

Period:  2011

Project leader:  Britta Rennkamp

Project team: Britta Rennkamp, Andrew Marquard, Tara Caetano


Putting a price on carbon is currently one of the most important topics on the South African climate policy agenda. The National Climate Change Response White paper indicates that it will be necessary to price carbon emissions. The national treasury suggests tax instrument for this purpose. Yet, there are a number of implicit pricing instruments on carbon in place already. In their study on effective carbon prices, ERC researchers analyze the current instruments for carbon pricing in the energy and transport sector and their impacts on the pulp and paper and cement industries as well as households. The Organization for Economic Development and Cooperation OECD does comparative work on carbon prices and has commissioned similar studies in other countries.

• Link to OECD website.