Ecological Tax Reform with Exemptions for the Export Sector in a two Sector two Factor Model
AbstractThis present paper analyzes an energy tax reform that exempts the energy-intensive export sector from paying the energy tax and uses the additional revenue to cut existing taxes in all sectors. To that end, a two sector two factor model of an open economy that is small on the import side but not on the export side is applied. Within this model, an equivalence between a tax reform with and without exemption of the export sector is derived. The equivalence occurs because in both tax schemes the tax burden is shifted through an increasing producer price of labor from the domestic to the foreign household.
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Bibliographic InfoPaper provided by Institute for Empirical Research in Economics - University of Zurich in its series IEW - Working Papers with number 029.
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Environmental tax reform; tax incidence; general equilibrium model;
Find related papers by JEL classification:
- D50 - Microeconomics - - General Equilibrium and Disequilibrium - - - General
- H22 - Public Economics - - Taxation, Subsidies, and Revenue - - - Incidence
- Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2000-05-08 (All new papers)
- NEP-ENE-2000-05-08 (Energy Economics)
- NEP-ENV-2000-05-08 (Environmental Economics)
- NEP-MIC-2000-05-08 (Microeconomics)
- NEP-PBE-2000-05-08 (Public Economics)
- NEP-PUB-2000-05-08 (Public Finance)
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