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A framework for environmental policy evaluation in the South African mining sector

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  • Thiele, Rainer

Abstract

This paper presents a Computable General Equilibrium (CGE) model for the analysis of environmental policies towards mining activities, and shows for the case of South Africa how it can be implemented numerically. The CGE model belongs to the class of static, trade-focussed models along the lines suggested by Dervis et al. (1982). A distinctive feature of the model is that it allows for substitution possibilities between primary factors and intermediate inputs such as energy and mineral resources. In the South African data base, two different types of households (black and other households) are distinguished in order to trace the distributional consequences of policy reforms which are of high priority given the income inequalities prevailing in South Africa.

Suggested Citation

  • Thiele, Rainer, 1998. "A framework for environmental policy evaluation in the South African mining sector," Kiel Working Papers 893, Kiel Institute for the World Economy (IfW Kiel).
    • Handle: RePEc:zbw:ifwkwp:893
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    References listed on IDEAS

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    1. Jorgenson, Dale W. & Goettle, Richard J. & Ho, Mun S. & Wilcoxen, Peter J., 2013. "Energy, the Environment and US Economic Growth," Handbook of Computable General Equilibrium Modeling, in: Peter B. Dixon & Dale Jorgenson (ed.), Handbook of Computable General Equilibrium Modeling, edition 1, volume 1, chapter 0, pages 477-552, Elsevier.
    2. Jean-Marc Burniaux & John P. Martin & Giuseppe Nicoletti & Joaquim Oliveira Martins, 1992. "GREEN a Multi-Sector, Multi-Region General Equilibrium Model for Quantifying the Costs of Curbing CO2 Emissions: A Technical Manual," OECD Economics Department Working Papers 116, OECD Publishing.
    3. France St‐Hilaire & John Whalley, 1983. "A Microconsistent Equilibrium Data Set For Canada For Use In Tax Policy Analysis," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 29(2), pages 175-204, June.
    4. Griffin, James M & Gregory, Paul R, 1976. "An Intercountry Translog Model of Energy Substitution Responses," American Economic Review, American Economic Association, vol. 66(5), pages 845-857, December.
    5. Nordhaus, William D, 1974. "Resources as a Constraint on Growth," American Economic Review, American Economic Association, vol. 64(2), pages 22-26, May.
    6. Hesse, Dieter M & Tarkka, Helena, 1986. " The Demand for Capital, Labor and Energy in European Manufacturing Industry before and after the Oil Price Shocks," Scandinavian Journal of Economics, Wiley Blackwell, vol. 88(3), pages 529-546.
    7. Ozatalay, Savas & Grubaugh, Stephen & Long, Thomas Veach, II, 1979. "Energy Substitution and National Energy Policy," American Economic Review, American Economic Association, vol. 69(2), pages 369-371, May.
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    Cited by:

    1. R Thiele, 1999. "A CGE Model for Environmental Policy Evaluation in the South African Mining Sector," South African Journal of Economics, Economic Society of South Africa, vol. 67(3), pages 201-210, September.
    2. Manfred Wiebelt, 2001. "Hazardous waste management in South African mining - a CGE analysis of the economic impacts," Development Southern Africa, Taylor & Francis Journals, vol. 18(2), pages 169-187.

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    More about this item

    Keywords

    computable general equilibrium model; mining; South Africa; environmental policy;
    All these keywords.

    JEL classification:

    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development

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