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2012-04-18 | Peer Reviewed

Environmental fiscal reform in Namibia – a potential approach to reduce poverty?

Sahlén, Linda and Jesper Stage. 2012. “Environmental fiscal reform in Namibia – a potential approach to reduce poverty?.” Journal of Environment and Development 21:2: 219-243.
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In this article, the likely effects of an environmental fiscal reform in Namibia are examined using a Computable General Equilibrium model. We find that a triple dividend—improving the environment, increasing employment, and reducing poverty at the same time—remains elusive.

Subsidizing unskilled labor would give the most favorable result in terms of real GDP and employment, but the worst in terms of environmental effects. Transfers targeted toward poorer households have the best distributional and environmental impacts, but do not lead to increases in GDP or employment. Thus there is scope to create additional benefits for society through the various environmental fiscal reform options studied, but there is no option that clearly outperforms the others in all respects.