The role of tax incentives in reducing CO2 emissions : evidence from vehicle manufacturers
Date
2013-05
Authors
Nel, Rudie
Du Plooy, Johann
Journal Title
Journal ISSN
Volume Title
Publisher
Clute Institute
Abstract
The objective of the study was to consider the role of tax incentives (deductions and allowances in
terms of the South African Income Tax Act) in reducing carbon dioxide (‘CO2’) emissions in the
automotive industry. The objective was achieved in the light of qualitative empirical evidence
obtained from South African vehicle manufacturers. A questionnaire was circulated to nine South
African vehicle manufacturers and the responses were interpreted to establish whether current tax
incentives provide an incentive to reduce CO2 emissions. Findings highlighted the importance of
tax incentives in reducing CO2 emissions and suggest that vehicle manufacturers regard tax
incentive-driven policies as the most effective tool in reducing CO2 emissions. However, since it is
difficult to qualify for current tax incentives, this approach might not provide the necessary
incentive to reduce CO2 emissions. It is recommended that tax incentive policies either be
simplified or alternative initiatives be introduced to encourage investments in the reduction of
CO2 emissions.
Description
Publication of this article was funded by the Stellenbosch University Open Access Fund.
The original publication is available at http://journals.cluteonline.com/index.php/IBER/
The original publication is available at http://journals.cluteonline.com/index.php/IBER/
Keywords
Motor fuels -- Taxation -- South Africa, Carbon taxes -- South Africa, Automobile industry and trade -- Taxation -- South Africa, Automobiles -- Motors -- Exhaust gas -- Taxation -- South Africa, Tax incentives -- South Africa
Citation
Nel, R. & Du Plooy, J. 2013. The role of tax incentives in reducing CO2 emissions - evidence from vehicle manufacturers. International Business and Economics Research Journal, 12(5): 551-564.