Abstract
Recently, environmental tax reforms have received increasing attention. In particular, some economists have argued that substituting environmental taxes for pre-existing distortionary taxes on income may yield a “doubledividend”, i.e. not only a cleaner environment but also a less distortionary way of revenue-raising (see Pearce, 1991; Oates, 1991) . Recent literature on the double-dividend suggests, however, that environmental taxes typically exacerbate, rather than alleviate, pre-existing tax distortions (see Bovenberg and De Mooij, 1994, 1995; Bovenberg and Van der Ploeg, 1994a; Goulder, 1994) .
Keywords
- Private Income
- Capital Demand
- Marginal Excess Burden
- Factor Demand Equation
- Uncompensated Wage Elasticity
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© 1996 Springer Science+Business Media Dordrecht
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Bovenberg, A.L., De Mooij, R.A. (1996). Environmental taxation and the double-dividend: The role of factor substitution and capital mobility. In: Carraro, C., Siniscalco, D. (eds) Environmental Fiscal Reform and Unemployment. Fondazione Eni Enrico Mattei (FEEM) Series on Economics, Energy and Environment, vol 7. Springer, Dordrecht. https://doi.org/10.1007/978-94-015-8652-8_1
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DOI: https://doi.org/10.1007/978-94-015-8652-8_1
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