Triangle of Economic Activity, Inequality and Green Transition in South Africa

23 Pages Posted: 3 Apr 2023

See all articles by Ozlem Omer

Ozlem Omer

Bucknell University

Jeronim Capaldo

Boston University Global Development Policy Center

Date Written: October 5, 2022

Abstract

In this paper, we introduce an extended version of a demand-driven growth and climate model which was initially developed by Rezai et. al. (2018) and modified by Omer and Capaldo (2022). The model is extended to include the size distribution of two different households (the bottom 90% of the households vs. the top 10% of the households) with different consumption behaviors. In this version, we are also able to trace the external debt and emissions under different scenarios in more detail. Overall, these modifications allow us to study the dynamics of economic activity, fiscal and monetary policies, and debt, and their relationships with income and emission inequality patterns under different climate pathways and with different policy options for South Africa. We, therefore, analyze and discuss potential tradeoffs that may arise between expansionary policy, stricter policy, and free-riding cases, focusing on economic activity, external debt, and income and emission inequalities in South Africa.

Keywords: climate change, climate policy, demand driven growth, income inequality, emission inequality, fiscal and monetary policies

JEL Classification: O23, O41, O44, O55, Q51, Q58

Suggested Citation

Omer, Ozlem and Capaldo, Jeronim, Triangle of Economic Activity, Inequality and Green Transition in South Africa (October 5, 2022). Available at SSRN: https://ssrn.com/abstract=4396755 or http://dx.doi.org/10.2139/ssrn.4396755

Ozlem Omer (Contact Author)

Bucknell University ( email )

701 Moore Ave.
Lewisburg, PA 17837
United States

Jeronim Capaldo

Boston University Global Development Policy Center ( email )

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
22
Abstract Views
128
PlumX Metrics