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The Benefits of Environmental Fiscal Reforms in an Integrated Europe

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  • Carraro, Carlo
  • Galeotti, Marzio

Abstract

This paper analyses the effects of an environmental fiscal reform where the environmental tax revenue is used to reduce the tax burden on labor in order to increase employment. The study tries to assess the benefits generated by this type of reform in an integrated Europe where different degrees of tax harmonization can be achieved. The differential impact of cooperative fiscal reforms versus noncooperative ones is quantified through the use of a newly developed general equilibrium model. The results suggest that only a high degree of harmonization, in which both revenue and expenditure policies are coordinated, can provide significant environmental and employment benefits. Copyright 1997 by Blackwell Publishing Ltd.

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Bibliographic Info

Article provided by Wiley Blackwell in its journal Review of International Economics.

Volume (Year): 5 (1997)
Issue (Month): 4 (Supplement)
Pages: 111-33

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Handle: RePEc:bla:reviec:v:5:y:1997:i:4:p:111-33

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Web page: http://www.blackwellpublishing.com/journal.asp?ref=0965-7576

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Cited by:
  1. Bosello, Francesco & Carraro, Carlo & Galeotti, Marzio, 1999. "The Double Dividend Issue: Modelling Strategies and Empirical Findings," CEPR Discussion Papers 2117, C.E.P.R. Discussion Papers.

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