Evaluation of the Readiness of New Car Dealerships in Polokwane for Possible Carbon Tax

Abstract

The study is carried out in order to evaluate the readiness of new car dealerships in Polokwane for the possible levying of carbon taxes. The study is set out to determine the level of understanding and knowledge of carbon taxes by the new car dealerships. With the continuous changing climate, the weather patterns have worsened and the resultant impacts seen through storms, hurricanes, droughts and floods, to name a few, around the globe. This has been as a result of the carbon emissions that has damaged the ozone layer. The ideology of the carbon instruments is that the emitters of carbon will divert to more environmentally friendly methods of running their operations. South Africa is one of the countries that has adopted to implement carbon taxes and the implementation began in 2010 within the motor vehicle industry. However, the motor vehicle industry does not seem to have prepared for the possible implementation of carbon taxes. With Polokwane being a developing city, the researcher aims to determine whether new car dealerships in the city of Polokwane were prepared for the implementation of the carbon taxes. The study was mainly qualitative and borrowed from quantitative methodology for data analysis. The total population amounted to 20 new car dealerships and a sample of 10 was selected for the purpose of the research. The evaluation of readiness was carried out by sampling of ten new car dealerships within Polokwane where a questionnaire was prepared and the participants requested to complete the questionnaire truthfully. The literature review considered prior research in relation to carbon emissions and carbon instruments. Some of the findings include identifying that there is still a gap in terms of knowledge and understanding of how carbon instruments work. However; if carbon instruments are correctly applied and implemented, provides for a good stimulation of economic growth. The laws and regulations around carbon tax still need to be refined to ensure that the desired outcomes are obtained.