The Double Dividend Hypothesis of Environmental Taxes: A Survey

Arbeitspapier

This survey reviews the recent literature on the double-dividend hypothesis of environmental taxes and discusses some extensions of the standard model such as the distributional consequences and the importance of the non-separability assumption between consumption goods and environmental quality for the optimal design of environmental policies. Turning to a model with imperfect labour markets we then show under which circumstances environmental taxes on polluting inputs in production and on polluting consumption goods can reap a second dividend in the form of an employment dividend and discuss the welfare implications. Finally, we turn to international aspects of environmental taxation. When environmental problems are tied to the use of exhaustible resources, resource-consuming countries can appropriate resource rents at the cost of resource-owning countries by levying environmental taxes strategically.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Nota di Lavoro ; No. 60.2003

Classification and Topics

• Classification: Wirtschaft ; Taxation and Subsidies: Efficiency; Optimal Taxation ; Taxation and Subsidies: Externalities; Redistributive Effects; Environmental Taxes and Subsidies ; Labor-Management Relations, Trade Unions, and Collective Bargaining: General ; Nonrenewable Resources and Conservation: General
• Subject: Environmental taxation ; Double-dividend hypothesis ; Full-employment models ; Unemployment models ; International coordination ; Ökosteuer ; Steuerwirkung ; Beschäftigungseffekt ; Wohlfahrtsanalyse ; Internationaler Wettbewerb ; Theorie ; Doppelte Dividende

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Schöb, Ronnie
• Event: Veröffentlichung
• (who): Fondazione Eni Enrico Mattei (FEEM)
• (where): Milano
• (when): 2003

Further information

• Handle: http://hdl.handle.net/10419/118103
• Last update: 10.03.2025, 11:43 AM CET