Double Dividend with Trade Distortions: Analytical Results and Evidence from Chile
AbstractThe double-dividend debate evolves around the possibility (or not) of substituting environmental taxes for more distortionary taxes to reduce both pollution degradation or damages (the first dividend) and the excess burden of existing taxes (the second dividend). This debate tends to center on labor market distortions, but this paper shifts the focus to trade and environmental distortions. Specifically, Beghin and Dessus empirically explore the trade/environment double-dividend with an applied general equilibrium model of the Chilean economy. Findings suggest that swapping environmental taxes for trade distortions in Chile does indeed improve welfare. Furthermore, the swap would pay for itself under the assumption of separable pollution damages from market-good consumption.
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Bibliographic InfoPaper provided by Food and Agricultural Policy Research Institute (FAPRI) at Iowa State University in its series Food and Agricultural Policy Research Institute (FAPRI) Publications with number 99-wp225.
Date of creation: Sep 1999
Date of revision:
Other versions of this item:
- John C. Beghin & Sebastien Dessus, 1999. "Double Dividend with Trade Distortions: Analytical Results and Evidence from Chile," Center for Agricultural and Rural Development (CARD) Publications 99-wp225, Center for Agricultural and Rural Development (CARD) at Iowa State University.
- Beghin, John C. & Dessus, Sebastien, 1999. "Double Dividend With Trade Distortions: Analytical Results And Evidence From Chile," 1999 Annual meeting, August 8-11, Nashville, TN 21509, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
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