Green Tax Reform and Two-Component Unemployment: Double Dividend or Double Loss?
The double-dividend argument (as used in political debates) addresses worries that a green tax may lead to higher unemployment when wages are inflexible. As protection against this possibility, it is proposed to use the green-tax proceeds to reduce the total tax burden of labor. Ideally, this protects the environment and reduces unemployment (double dividend). However, even if the main cause of unemployment is a minimum wage, an additional efficiency-wage component (which explains certain stylized facts) can dominate employment effects. In the worst case, this leads to a "double loss," which is impossible under pure minimum-wage unemployment.
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.
Volume (Year): 157 (2001)
Issue (Month): 2 (June)
|Contact details of provider:|| Web page: http://www.mohr.de/jite|
|Order Information:|| Postal: Mohr Siebeck GmbH & Co. KG, P.O.Box 2040, 72010 Tübingen, Germany|
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.:
- Albert, Max & Meckl, Jürgen, 1997. "Efficiency wages, unemployment and welfare: A trade theorists' guide," Discussion Papers, Series II 348, University of Konstanz, Collaborative Research Centre (SFB) 178 "Internationalization of the Economy".
- Schneider, Kerstin, 1997. " Involuntary Unemployment and Environmental Policy: The Double Dividend Hypothesis," Scandinavian Journal of Economics, Wiley Blackwell, vol. 99(1), pages 45-49, March.
- Koskela, Erkki & Schöb, Ronnie & Sinn, Hans-Werner, 1998.
"Pollution, Factor Taxation and Unemployment,"
Munich Reprints in Economics
19493, University of Munich, Department of Economics.
- Erkki Koskela & Ronnie Schob & Hans-Werner Sinn, 1999.
"Green Tax Reform and Competitiveness,"
NBER Working Papers
6922, National Bureau of Economic Research, Inc.
- Koskela, Erkki & Schöb, Ronnie & Sinn, Hans-Werner, 2001. "Green tax reform and competitiveness," Munich Reprints in Economics 19492, University of Munich, Department of Economics.
- Koskela, Erkki & Schöb, Ronnie & Sinn, Hans-Werner, 1999. "Green Tax Reform and Competitiveness," CEPR Discussion Papers 2089, C.E.P.R. Discussion Papers.
- Koskela, Erkki & Schöb, Ronnie & Sinn, Hans-Werner, 2000. "Green Tax Reform and Competitiveness," Discussion Papers 731, The Research Institute of the Finnish Economy.
- A. Bovenberg, 1998. "Environmental Taxes and the Double Dividend," Empirica, Springer, vol. 25(1), pages 15-35, January.
- Bovenberg, A Lans & van der Ploeg, Frederick, 1998. " Tax Reform, Structural Unemployment and the Environment," Scandinavian Journal of Economics, Wiley Blackwell, vol. 100(3), pages 593-610, September.
- Koskela, Erkki & Schob, Ronnie, 1999. "Alleviating unemployment:: The case for green tax reforms," European Economic Review, Elsevier, vol. 43(9), pages 1723-1746, October.
- Schlicht, Ekkehart, 1992. "Wage Generosity," Munich Reprints in Economics 3165, University of Munich, Department of Economics.
- Bulow, Jeremy I & Summers, Lawrence H, 1986.
"A Theory of Dual Labor Markets with Application to Industrial Policy,Discrimination, and Keynesian Unemployment,"
Journal of Labor Economics,
University of Chicago Press, vol. 4(3), pages 376-414, July.
- Jeremy I. Bulow & Lawrence H. Summers, 1985. "A Theory of Dual Labor Markets with Application to Industrial Policy, Discrimination and Keynesian Unemployment," NBER Working Papers 1666, National Bureau of Economic Research, Inc.
- Krueger, Alan B & Summers, Lawrence H, 1988. "Efficiency Wages and the Inter-industry Wage Structure," Econometrica, Econometric Society, vol. 56(2), pages 259-93, March.
- Bovenberg, A. Lans & van der Ploeg, Frederick, 1996.
"Optimal taxation, public goods and environmental policy with involuntary unemployment,"
Journal of Public Economics,
Elsevier, vol. 62(1-2), pages 59-83, October.
- Bovenberg, A.L. & van der Ploeg, F., 1996. "Optimal taxation, public goods and environmental policy with involuntary unemployment," Other publications TiSEM 2a1a87d9-2ed9-41a7-b3aa-b, Tilburg University, School of Economics and Management.
- Bovenberg, A.L. & van der Ploeg, F., 1993. "Optimal taxation, public goods and environmental policy with involuntary unemployment," Discussion Paper 1993-77, Tilburg University, Center for Economic Research.
- Akerlof, George A & Yellen, Janet L, 1990. "The Fair Wage-Effort Hypothesis and Unemployment," The Quarterly Journal of Economics, MIT Press, vol. 105(2), pages 255-83, May.
- repec:ner:tilbur:urn:nbn:nl:ui:12-73563 is not listed on IDEAS
- Akerlof, George A, 1982. "Labor Contracts as Partial Gift Exchange," The Quarterly Journal of Economics, MIT Press, vol. 97(4), pages 543-69, November.
When requesting a correction, please mention this item's handle: RePEc:mhr:jinste:urn:sici:0932-4569(200106)157:2_265:gtratu_2.0.tx_2-1. 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: (Thomas Wolpert)
If references are entirely missing, you can add them using this form.