ISSN:
1573-1502
Keywords:
double dividend
;
environmental quality
;
fixed factor
;
involuntary unemployment
;
labour tax
;
optimal taxation
;
pollution
;
tax reform
;
triple dividend
;
JEL classification: E60, H21, Q3
Source:
Springer Online Journal Archives 1860-2000
Topics:
Energy, Environment Protection, Nuclear Power Engineering
,
Economics
Notes:
Abstract We investigate the welfare effects of environmental tax reform, i.e. raising environmental taxes and using the proceeds to reduce distortionary taxes on labour. The framework of analysis is a small open economy with involuntary unemployment due to a rigid consumer wage. Environmental tax reform boosts not only environmental quality but also employment if substitution between labour and resources is easy, the production share of the fixed factor is large, and the initial tax rates on resources and profits are small. If the initial tax system is sub-optimal with a negligible tax on resources, profits rise as well.
Type of Medium:
Electronic Resource
URL:
http://dx.doi.org/10.1023/A:1016040327622
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