Double dividend effectiveness of energy tax policies and the elasticity of substitution: A CGE appraisal
There is a considerable body of literature that has studied whether or not an adequately designed tax swap, whereby an ecotax is levied and some other tax is reduced while keeping government income constant, may achieve a so-called double dividend, that is, an increase in environmental quality and an increase in overall efficiency. Arguments in favor and against are abundant. Our position is that the issue should be empirically studied starting from an actual, non-optimal tax system structure and by way of checking the responsiveness of equilibria to revenue neutral tax regimes under alternate scenarios regarding technological substitution. With the use of a CGE model, we find that the most critical elasticity for achieving a double dividend is the substitution elasticity between labor and capital whereas the elasticity that would generate the highest reduction in carbon dioxide emissions is the substitution elasticity among energy goods.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Leung, H. M. & Low, L. & Toh, M. H., 1999. "Tax Reforms in Singapore," Journal of Policy Modeling, Elsevier, vol. 21(5), pages 607-617, September.
- Kehoe, Timothy J. & Whalley, John, 1985. "Uniqueness of equilibrium in large-scale numerical general equilibrium models," Journal of Public Economics, Elsevier, vol. 28(2), pages 247-254, November.
- M. Alejandro Cardenete & Ferran Sancho, 2002.
"Sensitivity of Simulation Results to Competing SAM Updates,"
88, Barcelona Graduate School of Economics.
- M. Alejandro Cardenete & Ferran Sancho, 2002. "Sensitivity of Simulation Results to Competing SAM Updates," UFAE and IAE Working Papers 556.02, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
- CARDENETE M. Alejandro & SANCHO Ferran, . "Sensitivity of Simulation Results to Competing SAM Updates," EcoMod2003 330700031, EcoMod.
- Oswald, Andrew J, 1982. "The Microeconomic Theory of the Trade Union," Economic Journal, Royal Economic Society, vol. 92(367), pages 576-95, September.
- Antonio Manresa & Ferran Sancho, 2002.
"Implementing a Double Dividend: Recycling Ecotaxes Towards Lower Labour Taxes,"
UFAE and IAE Working Papers
536.02, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
- Manresa, Antonio & Sancho, Ferran, 2005. "Implementing a double dividend: recycling ecotaxes towards lower labour taxes," Energy Policy, Elsevier, vol. 33(12), pages 1577-1585, August.
- Cardenete, M. Alejandro & Sancho, Ferran, 2004. "Sensitivity of CGE Simulation Results to Competing SAM Updates," The Review of Regional Studies, Southern Regional Science Association, vol. 34(1), pages 37-56.
- Chirinko, Robert S., 2002.
"Corporate Taxation, Capital Formation,and the Substitution Elasticity between Labor and Capital,"
National Tax Journal,
National Tax Association, vol. 55(N. 2), pages 339-355, June.
- Robert S. Chirinko, 2002. "Corporate Taxation, Capital Formation, and the Substitution Elasticity between Labor and Capital," CESifo Working Paper Series 707, CESifo Group Munich.
- Robert Chirinko, 2002. "Corporate Taxation, Capital Formation, and the Substitution Elasticity between Labor and Capital," Emory Economics 0201, Department of Economics, Emory University (Atlanta).
- Timothy J. Kehoe & Clemente Polo & Ferran Sancho, 1994.
"An evaluation of the performance of an applied general equilibrium model of the Spanish economy,"
480, Federal Reserve Bank of Minneapolis.
- Kehoe, Timothy J & Polo, Clemente & Sancho, Ferran, 1995. "An Evaluation of the Performance of an Applied General Equilibrium Model of the Spanish Economy," Economic Theory, Springer, vol. 6(1), pages 115-41, June.
- Golan, Amos & Judge, George & Robinson, Sherman, 1994. "Recovering Information from Incomplete or Partial Multisectoral Economic Data," The Review of Economics and Statistics, MIT Press, vol. 76(3), pages 541-49, August.
When requesting a correction, please mention this item's handle: RePEc:eee:enepol:v:38:y:2010:i:6:p:2927-2933. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.