Carbon Taxation and Carbon Emission Targeting in Africa: Readiness and Challenges

Purpose: This study explores carbon emission targeting and carbon taxation in Africa. It conducts technical analyses on carbon taxation as a panacea to achieving carbon emission targets, assesses the challenges and readiness of carbon taxation in Africa. Methods: This paper follows a narrative, thematic, and technical discourse approach. The paper reviews the existing literature and presents technical arguments focusing on carbon emission targeting in Africa, carbon taxation as a panacea for carbon emission targeting, challenges, and readiness of the carbon tax in Africa. Findings: It was revealed that even though Africa has the lowest carbon emission per capita, it has the highest carbon intensity. Africa is also identified as the most vulnerable to existential threats of climate change. The study also Carbon tax is consistent with fundamental canons and the theory of taxation. It is also revealed that although Africa has a carbon emission targeting framework, the implementation is still snail-paced. Carbon taxation is found to be triple dividends for Africa to achieve its carbon targets, improve green revenue, and growth transformation. The study found evidence of fundamental challenges to the implementation of carbon taxation, nevertheless, there are still fertile grounds for successful carbon taxation. Research Limitation/Implications: This research is contextualised within the African region and this could affect the implications. Practical Implication: The evidence in this paper presents a framework for adopting carbon taxation as an inclusive strategy toward achieving green-revenue growth in Africa. It provides a window for improving tax revenue through carbon emission targeting. Social Implication: This study presents carbon taxation as a market-based policy instrument to address carbon emission challenges in Africa. Originality/Value: This paper is one of the emerging studies which have analysed Africa’s readiness and challenges for adopting a carbon taxation strategy. It has showcased the triple dividends of a carbon tax.