In a broader policy context, the carbon tax proposal might negatively impact on energy prices in a country like South Africa which are mainly dependent on coal, and which has limited alternative sources of energy, especially renewable sources. It would therefore be ideal to give a time frame to explore other alternative energy sources before introducing a carbon tax. An introduction of carbon tax would also have a negative impact on South Africa's international competitiveness, due to the fact that a significant proportion of South Africa's exports are energy-intensive exports.