

Eskom would face higher prices for coal, forcing it to look for more carbon-efficient ways to generate electricity or it would pass the cost on to the consumer. It would also result in less incentive for Eskom to invest in technology such as carbon capture and storage. Ultimately, demand for fossil fuel would drop.
A tax of R100 a ton could generate about R45-billion in tax revenue as the country generates about 450-million tons of greenhouse gases a year. But around R650-billion in tax revenue was collected last year, so the proposed carbon tax represents a substantial additional burden and would be inflationary. (IAAfrica, 8/3/2010)
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