The impact of the COVID 19 enforced lockdown and fiscal package on the South African economy and environment: A preliminary analysis

This study offers a first attempt at quantifying the impacts of the Coronavirus disease 2019 induced lockdown and government fiscal plan on the economy and the environment. Using South Africa as an example, a dynamic computable general equilibrium model is constructed to quantify the economic and environmental impacts. The main findings are that while the pandemic has negative impacts on the economy, counteracting fiscal policies help the economy to recover in the long run and reduce inequality. However, the short-term positive environmental impacts of reduced greenhouse gas emissions and industrial water demand get reversed in the long run. What the study finds could create an opportunity for renewed impetus and urgency to implement environmental policies when fiscal support packages are in place.