Green Tax Reform and Competitiveness
AbstractThis 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. Copyright Verein fü Socialpolitik and Blackwell Publishers Ltd 2001.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Verein für Socialpolitik in its journal German Economic Review.
Volume (Year): 2 (2001)
Issue (Month): 1 (02)
Contact details of provider:
Web page: http://www.blackwellpublishing.com/journal.asp?ref=1465-6485
More information through EDIRC
Other versions of this item:
- Koskela, Erkki & Schöb, Ronnie & Sinn, Hans-Werner, 1999. "Green Tax Reform and Competitiveness," CEPR Discussion Papers 2089, C.E.P.R. Discussion Papers.
- Koskela, Erkki & Schöb, Ronnie & Sinn, Hans-Werner, 2001. "Green tax reform and competitiveness," Munich Reprints in Economics 19492, University of Munich, Department of Economics.
- Koskela, Erkki & Schöb, Ronnie & Sinn, Hans-Werner, 2000. "Green Tax Reform and Competitiveness," Discussion Papers 731, The Research Institute of the Finnish Economy.
- Erkki Koskela & Ronnie Schob & Hans-Werner Sinn, 1999. "Green Tax Reform and Competitiveness," NBER Working Papers 6922, National Bureau of Economic Research, Inc.
- H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
- J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Alberto Alesina & Roberto Perotti, 1994.
"The Welfare State and Competitiveness,"
NBER Working Papers
4810, National Bureau of Economic Research, Inc.
- Koskela, Erkki & Schöb, Ronnie & Sinn, Hans-Werner, 1998.
"Pollution, Factor Taxation and Unemployment,"
Munich Reprints in Economics
19493, University of Munich, Department of Economics.
- Bovenberg, A Lans & de Mooij, Ruud A, 1997. "Environmental Levies and Distortionary Taxation: Reply," American Economic Review, American Economic Association, vol. 87(1), pages 252-53, March.
- Bovenberg, A.L. & Mooij, R.A. de, 1994.
"Environmental levies and distortionary taxation,"
Open Access publications from Tilburg University
urn:nbn:nl:ui:12-152985, Tilburg University.
- Koskela, Erkki & Schob, Ronnie, 1999. "Alleviating unemployment:: The case for green tax reforms," European Economic Review, Elsevier, vol. 43(9), pages 1723-1746, October.
- Bucovetsky, Sam & Wilson, John Douglas, 1991. "Tax competition with two tax instruments," Regional Science and Urban Economics, Elsevier, vol. 21(3), pages 333-350, November.
- Wolfram F. Richter & Kerstin Schneider, 2001.
"Taxing Mobile Capital with Labor Market Imperfections,"
CESifo Working Paper Series
477, CESifo Group Munich.
- Wolfram Richter & Kerstin Schneider, 2001. "Taxing Mobile Capital with Labor Market Imperfections," International Tax and Public Finance, Springer, vol. 8(3), pages 245-262, May.
- Perotti, Roberto & Alesina, Alberto, 1997. "The Welfare State and Competitiveness," Scholarly Articles 4553027, Harvard University Department of Economics.
- O'Ryan, Raúl & de Miguel, Carlos J. & Miller, Sebastian & Munasinghe, Mohan, 2005. "Computable general equilibrium model analysis of economywide cross effects of social and environmental policies in Chile," Ecological Economics, Elsevier, vol. 54(4), pages 447-472, September.
- Boeters, Stefan, 2001.
"Green tax reform and employment: the interaction of profit and factor taxes,"
ZEW Discussion Papers
01-45, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Stefan Boeters, 2004. "Green Tax Reform and Employment: The Interaction of Profit and Factor Taxes," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 60(2), pages 222-, August.
- Thomas Aronsson, 2005. "Environmental Policy, Efficient Taxation and Unemployment," International Tax and Public Finance, Springer, vol. 12(2), pages 131-144, March.
- Reto Schleiniger & Stefan Felder, . "Fossile Energiepolitik jenseits von Kyoto," IEW - Working Papers 078, Institute for Empirical Research in Economics - University of Zurich.
- Max Albert & Jürgen Meckl, 2001.
"Green Tax Reform and Two-Component Unemployment: Double Dividend or Double Loss?,"
Journal of Institutional and Theoretical Economics (JITE),
Mohr Siebeck, Tübingen, vol. 157(2), pages 265-, June.
- Albert, Max & Meckl, Jürgen, 1999. "Green tax reform and two-component unemployment: Double dividend or double loss?," Discussion Papers, Series 1 297, University of Konstanz, Department of Economics.
- Christoph Böhringer & Andreas Löschel & Heinz Welsch, 2008. "Environmental Taxation and Induced Structural Change in an Open Economy: The Role of Market Structure," German Economic Review, Verein für Socialpolitik, vol. 9, pages 17-40, 02.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.