Imperfect Competition, Labour Market Distortions and the Double Divident Hypothesis
AbstractThe paper explores the hypothesis of a double divident from environmental taxation. It is argued that an environmental tax reform, i.e. shifting the burden of taxation away from labour toward the environment can improve environmental quality, boost employment and increase welfare. The paper presents a general equilibrium model of a closed economy. A theoretical analysis is conducted in a second best world, where the economy is distorted by labour taxes.
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Bibliographic InfoPaper provided by Department of Economics, University of Birmingham in its series Discussion Papers with number 97-26.
Length: 47 pages
Date of creation: 1997
Date of revision:
MARKET STRUCTURE ; SOCIAL WELFARE ; FISCAL POLICY ; TAXATION ; TRADE UNIONS;
Find related papers by JEL classification:
- D40 - Microeconomics - - Market Structure and Pricing - - - General
- D62 - Microeconomics - - Welfare Economics - - - Externalities
- E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy
- H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
- J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
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