Projects

The Industrial Development Corporation (IDC) and the German Development Bank (KfW) have partnered to make a R500-million facility available for energy-efficiency and self-use renewable energy projects called the Green Energy Efficiency Fund (GEEF).The GEEF targets smaller firms (widely defined as meeting any one of the following three criteria: turnover of less than R51m, assets of less than R55m assets, or employing less than 200 people). DNA Economics assisted the GEEF to organize focused workshops (10-15 people) to highlight the availability of GEEF funding.

The project considered how a carbon budget approach and carbon tax could be combined to support the achievement of sub-national mitigation targets. In particular, the study assessed the different interface options for combining a broad-based carbon tax and quantity-based instruments to increase the likelihood that sub-national mitigation targets will be met. The complexities inherent in combining a broad-based carbon tax with quantity-based instruments were highlighted, and guidelines were provided to minimise the possible trade-off between environmental effectiveness and economic efficiency that may arise from the combination of these policy instruments.

The project considered the macroeconomic impacts of restricting the exports of low and medium quality coal using an economy-wide model (dynamic general computable equilibrium).

This study assessed the various costs and benefits associated with the power buy-back (PBB) agreements entered into by Eskom and a number of its key industrial customers. Detailed analysis was undertaken of the impact of the PBB agreements on Eskom, its key industrial customers, the wider South African economy, and the commodity markets affected. The study included a quantitative cost-benefit analysis.

The project provided a deeper understanding of socio-economic implications of the chemicals sector in South Africa attempting to meet a theoretical minimum carbon budget. The project employed a purpose-built emissions model to combine information relating to the technical and financial feasibility of mitigation options with investment plans and output projections to develop a theoretical minimum carbon budget for the sector. This budget was shown to be consistent with possible chemical sector carbon budgets based on current government policy processes. The assumptions underlying the emissions model was combined with qualitative and quantitative inputs obtained from chemical sector firms to analyse the socio-economic impact of actions required to remain within the theoretical minimum carbon budget.

DNA Economics co-authored a conceptual paper with Prof Nick Segal considering how green growth (or the development of a green economy) might impact upon SA‟s other developmental objectives.

The presentation deals the role of transport in meeting South Africa’s greenhouse gas mitigation targets and considers the potential impact of the current carbon tax proposal on liquid fuel prices.

This research addressed the issue of whether South Africa’s current infrastructure spending pattern is likely to lock the economy in to a high carbon development path. The research forms part of an ongoing programme run by Sustainable Energy Africa to assist the National Planning Commission (NPC) in interrogating issues that may influence the development of a national development plan.

DNA Economics was part of the team that designed DFID’s proposed 2.5 million pound Strategic Climate Change Policy Fund. The Fund will aim to to support South Africa’s low carbon transition via demand-driven focused interventions to influence low carbon transition policy and the development of supporting legislative frameworks in the energy, industry and transport sectors.

The presentation deals the role of transport in meeting South Africa’s greenhouse gas mitigation targets and considers the potential impact of the current carbon tax proposal on liquid fuel prices.