Environmental tax reform and the double dividend: An econometric demand analysis
AbstractThis paper examines the empirical relevance of the double dividend of revenue neutral marginal environmental tax reforms. For this purpose we use an extended version of the Ahmad-Stern model of indirect taxation. This version includes environmental externalities. We estimate the key parameters of the model with different dynamic specifications of the Almost Ideal Demand System. We find no evidence that a revenue neutral environmental tax reform that increases the energy or gasoline tax yields a double dividend.
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Bibliographic InfoPaper provided by Kiel Institute for the World Economy in its series Kiel Working Papers with number 821.
Date of creation: 1997
Date of revision:
Find related papers by JEL classification:
- D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
- H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
- H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
- H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
- Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply
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