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The Double Dividend Hypothesis of Environmental Taxes: A Survey

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  • Ronnie Schöb

Abstract

This survey reviews the recent literature on the double-dividend hypothesis of environmental taxes and discusses some recent 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. Furthermore, the paper analyses alternative concepts of a double dividend by looking at the employment dividend in countries that suffer from involuntary unemployment, and rent-extracting dividends that resource-consuming countries can reap at the cost of resource-owning countries.

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Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 946.

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Date of creation: 2003
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Handle: RePEc:ces:ceswps:_946

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Cited by:
  1. Ian W. H. Parry, 2003. "Fiscal Interactions and the Case for Carbon Taxes Over Grandfathered Carbon Permits," Oxford Review of Economic Policy, Oxford University Press, vol. 19(3), pages 385-399.
  2. Katri Kosonen & Gaëtan Nicodème, 2009. "The role of fiscal instruments in environmental policy," Working Papers CEB 09-026.RS, ULB -- Universite Libre de Bruxelles.
  3. Jean-Christophe Caffet, 2005. "Health effects and optimal environmental taxes in welfare state countries," Cahiers de la Maison des Sciences Economiques v05049, Université Panthéon-Sorbonne (Paris 1).
  4. Manel Antelo, 2005. "Double informational asymmetry, signaling, and environmental taxes," Economic Working Papers at Centro de Estudios Andaluces E2005/25, Centro de Estudios Andaluces.

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