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Pricing greenhouse gas and air pollution externalities in South Africa

External costs from carbon intensive activities need to be factored into decision-making processes to account for greenhouse gas and air pollution impacts on broader society and begin making more sustainable decisions.

South Africa is a carbon intensive economy where the combustion of coal and liquid fuels places a number of external impacts on the environment and society.

When external costs are accounted for, the price of carbon intensive goods increases to reflect their true price or social cost. This inevitably makes sustainable options, such as renewable sources of energy, more economically attractive and will encourage policymakers and private investors to begin investing in such sustainable technologies.

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Pricing GHG and Air Pollution Externalities in South Africa

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