A CGE model for environmental policy evaluation in the South African mining sector

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Periodical article

Title:	A CGE model for environmental policy evaluation in the South African mining sector
Author:	Thiele, R.
Year:	1999
Periodical:	South African Journal of Economics
Volume:	67
Issue:	3
Pages:	456-474
Language:	English
Geographic term:	South Africa
Subjects:	environment mining
External link:	https://onlinelibrary.wiley.com/doi/10.1111/j.1813-6982.1999.tb01150.x/pdf
Abstract:	A growing consensus has evolved that the environmental side-effects of resource extraction, i.e. the destruction of habitat and the emission of various pollutants are a real problem. This paper offers a modelling framework for the evaluation of policy measures which might reduce these side effects, and provides a data set for implementing the model for South Africa where mining is of critical economic importance. The model introduced by the paper is a static, trade-focused Computable General Equilibrium model. The South African database has been organized in a matrix that distinguishes two different household types (black and other households) in order to trace the distributional consequences of policy reforms which are of high political priority given the racial income inequalities prevailing in South Africa. A crucial economic importance of mining activities is shown for South Africa, particularly in terms of export earnings. This implies that environmental policy measures are likely to have considerable economy-wide effects, thus making simulations in a multisectoral model relevant. Bibliogr., notes, ref.