Green tax reform and competitiveness

Arbeitspapier

This paper studies a revenue-neutral green tax reform that substitutes energy for wage taxes in an open economy with unemployment. As long as the labour tax rate exceeds the energy tax rate, such a reform will increase employment, reduce the domestic firms' unit cost of production and hence increase international competitiveness and output of the economy. The driving force behind these results is the technological substitution process that a green tax reform will bring about. The resulting reduction in unemployment is welfare increasing since energy, which the country has to buy at its true national opportunity cost, is replaced with labour, whose price is above its social opportunity cost.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: ETLA Discussion Papers ; No. 731

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Taxation, Subsidies, and Revenue: General ; Trade Unions: Objectives, Structure, and Effects
• Thema: Green tax reform ; involuntary unemployment ; competitiveness ; Steuerreform ; Ökosteuer ; Internationaler Wettbewerb ; Faktorsubstitution ; Wohlfahrtseffekt ; Kleines-offenes-Land ; Theorie

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Koskela, Erkki ; Schöb, Ronnie ; Sinn, Hans-Werner
• Ereignis: Veröffentlichung
• (wer): The Research Institute of the Finnish Economy (ETLA)
• (wo): Helsinki
• (wann): 2000

Weitere Informationen

• Handle: http://hdl.handle.net/10419/63893
• Letzte Aktualisierung: 10.03.2025, 11:42 MEZ