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Paying the piper and calling the tune?: A meta-regression analysis of the double-dividend hypothesis

  • Anger, Niels
  • Böhringer, Christoph
  • Löschel, Andreas

We present a meta-regression analysis of model-based simulation studies assessing the employment effects of environmental tax reforms. Besides the role of central modeling assumptions we investigate the implications of contracting bodies on the simulation results. Our analysis reveals the importance of unobservable study characteristics for the prospects of a double dividend in terms of lower emissions along with higher employment levels. While at first glance labor market assumptions and the contracting body seem to play a central role for the model outcome, these observable features are no longer significant when unobservable study features are controlled for. In contrast, we find the simulated employment impacts of environmental tax reforms to be determined by a joint set of explicit model assumptions as well as implicit characteristics of the respective studies.

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Article provided by Elsevier in its journal Ecological Economics.

Volume (Year): 69 (2010)
Issue (Month): 7 (May)
Pages: 1495-1502

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Handle: RePEc:eee:ecolec:v:69:y:2010:i:7:p:1495-1502
Contact details of provider: Web page: http://www.elsevier.com/locate/ecolecon

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  1. Jon Nelson & Peter Kennedy, 2009. "The Use (and Abuse) of Meta-Analysis in Environmental and Natural Resource Economics: An Assessment," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 42(3), pages 345-377, March.
  2. Pearce, David W, 1991. "The Role of Carbon Taxes in Adjusting to Global Warming," Economic Journal, Royal Economic Society, vol. 101(407), pages 938-48, July.
  3. Stefan Bach, 1997. "Steuerreform in Deutschland," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 66(3-4), pages 291-316.
  4. Roberto Patuelli & Eric Pels & Peter Nijkamp, 2002. "Environmental Tax Reform and Double Dividend," Tinbergen Institute Discussion Papers 02-095/3, Tinbergen Institute.
  5. Heinz Welsch, 1996. "Recycling of carbon/energy taxes and the labor market," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 8(2), pages 141-155, September.
  6. Bosquet, Benoit, 2000. "Environmental tax reform: does it work? A survey of the empirical evidence," Ecological Economics, Elsevier, vol. 34(1), pages 19-32, July.
  7. Lawrence Goulder, 1995. "Environmental taxation and the double dividend: A reader's guide," International Tax and Public Finance, Springer, vol. 2(2), pages 157-183, August.
  8. Carraro, Carlo & Galeotti, Marzio & Gallo, Massimo, 1996. "Environmental taxation and unemployment: Some evidence on the 'double dividend hypothesis' in Europe," Journal of Public Economics, Elsevier, vol. 62(1-2), pages 141-181, October.
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