The prospects and challenges of the proposed carbon tax regime in South Africa: lessons from the Nigerian experience

One of the policy instruments canvassed for the reduction of greenhouse gases (GHGs) is carbon tax. Carbon tax- an economic instrument which levies taxes on the carbon content of goods and services, is increasingly getting popular among policy makers worldwide. South Africa is one of the countries with advanced plans to adopt carbon tax as a way of reducing and discouraging the emission of GHGs. This paper analyses the proposed carbon tax in the light of South Africa’s commitment under the United Nations Framework Convention on Climate Change (UNFCCC). What lessons can South Africa learn from a similar environmental tax regime previously adopted in Nigeria?Keywords: Carbon Tax, South Africa, Nigeria, GHGs, United Nations Framework Convention on Climate Chang