Complex modeling, discussions and negotiations about the effects and challenges of implementing an economy-wide carbon tax in South Africa led to the African country taking a bold plan to the Copenhagen climate negotiations.
The world needs to move away from only setting national carbon emission targets, and instead supplement these with an agreed maximum and minimum carbon price that clearly measures the effort it takes to reach these targets, according to new research.
Badly-designed taxes and huge election commitments without guaranteed revenue streams to pay for them run the risk of blowing a multi-billion dollar hole in the national economy, according to a leading economist.