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Implementation of environmental tax in Sub-Saharan Africa: a comparative analysis from policy adopter and policy pioneers

Author

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  • Pius Gamette

    (University of Cape Coast)

  • Clement Oteng

    (University of Cape Coast)

Abstract

Motivated by the pressing need to address environmental concerns, this paper undertakes a comparative analysis of environmental taxes in Ghana (policy adopter) and South Africa and Mauritius (policy pioneers). Results indicate that environmental taxes are major policy tools implemented in Ghana, South Africa and Mauritius to curb environmental degradation. Comparatively, environmental tax rates in Ghana are lower than those in South Africa and Mauritius. Polluters in Ghana pay three major tax burdens (tax rate for plastics, fuel, and diesel) as compared to four tax burdens (plastic container levy, MID levy on fossil fuels, vehicle ownership taxes, and environment protection fees) in Mauritius and six tax burdens (plastic bags, electricity generation, vehicle carbon emissions, carbon emissions from industrial processes, fuel and tyres) in South Africa. Environmental taxes in these three countries inherently adopt multi-dimensional approaches (internalisation of externalities, adherence to the polluter pays principle and generation of domestic revenues) towards broad economic objectives. As a contribution, this study provides pertinent information to African countries that are yet to adopt environmental taxes as a novel strategy to expand their fiscal space and curb environmental degradation.

Suggested Citation

  • Pius Gamette & Clement Oteng, 2025. "Implementation of environmental tax in Sub-Saharan Africa: a comparative analysis from policy adopter and policy pioneers," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 30(2), pages 1-23, February.
    • Handle: RePEc:spr:masfgc:v:30:y:2025:i:2:d:10.1007_s11027-025-10202-3
    DOI: 10.1007/s11027-025-10202-3
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    References listed on IDEAS

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    More about this item

    Keywords

    Environmental tax; Policy adopter; Policy pioneers; Ghana; Mauritius; South Africa;
    All these keywords.

    JEL classification:

    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa
    • Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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