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The Double Dividend Hypothesis of Environmental Taxes: A Survey

  • Ronnie Schöb

This survey reviews the recent literature on the double-dividend hypothesis of environmental taxes and discusses some recent extensions of the standard model such as the distributional consequences and the importance of the non-separability assumption between consumption goods and environmental quality for the optimal design of environmental policies. Furthermore, the paper analyses alternative concepts of a double dividend by looking at the employment dividend in countries that suffer from involuntary unemployment, and rent-extracting dividends that resource-consuming countries can reap at the cost of resource-owning countries.

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Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 946.

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Date of creation: 2003
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Handle: RePEc:ces:ceswps:_946
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