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Double Dividend and Distribution of Welfare : Advanced Results and Empirical Considerations

Listed author(s):
  • Mireille Chiroleu-Assouline

    ()

    (CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, PSE - Paris School of Economics)

  • Mouez Fodha

    ()

    (CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, PSE - Paris School of Economics)

The objective of this paper is to analyze the efficiency and equity consequences of the implementation of an environmental tax. Do the two purposes collide or can they be simultaneously achieved? Using results of the related literature, we show that precise conditions have to be met in order to achieve three goals: increase of the environmental quality, increase of the economic efficiency and improvement of the intergenerational equity. Are such theoretical conditions likely to occur? What are the rooms of manoeuvre for an environmental tax reform in the European countries? In each of them, the revenues of the existing environmental taxes are low in comparison to the weight of the labor taxes (which are highly distortionary). Using European data, we show that, among all the European countries, Belgium, France and, surprisingly, Sweden, exhibit the less green tax system and offer the easiest opportunity to use the environmental tax as a mean to alleviate the tax burden on labor.

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Paper provided by HAL in its series Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) with number hal-00519529.

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Date of creation: 02 Aug 2010
Publication status: Published in Economie Internationale, 2010, 2009 (4T / 120), pp.91-108
Handle: RePEc:hal:cesptp:hal-00519529
Note: View the original document on HAL open archive server: https://hal-paris1.archives-ouvertes.fr/hal-00519529
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  13. Williams, Roberton III, 2002. "Environmental Tax Interactions when Pollution Affects Health or Productivity," Journal of Environmental Economics and Management, Elsevier, vol. 44(2), pages 261-270, September.
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  16. Bloom, David E. & Canning, David & Sevilla, Jaypee, 2004. "The Effect of Health on Economic Growth: A Production Function Approach," World Development, Elsevier, vol. 32(1), pages 1-13, January.
  17. Bosello, Francesco & Carraro, Carlo & Galeotti, Marzio, 2001. "The double dividend issue: modeling strategies and empirical findings," Environment and Development Economics, Cambridge University Press, vol. 6(01), pages 9-45, February.
  18. Williams III, Roberton C., 2003. "Health effects and optimal environmental taxes," Journal of Public Economics, Elsevier, vol. 87(2), pages 323-335, February.
  19. Åsa Hansson, 2007. "Taxpayers' responsiveness to tax rate changes and implications for the cost of taxation in Sweden," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 14(5), pages 563-582, October.
  20. Bovenberg, A. Lans & Heijdra, Ben J., 1998. "Environmental tax policy and intergenerational distribution," Journal of Public Economics, Elsevier, vol. 67(1), pages 1-24, January.
  21. Mireille Chiroleu-Assouline & Mouez Fodha, 2011. "Environmental Tax and the Distribution of Income among Heterogeneous Workers," Annals of Economics and Statistics, GENES, issue 103-104, pages 71-92.
  22. Pearce, David W, 1991. "The Role of Carbon Taxes in Adjusting to Global Warming," Economic Journal, Royal Economic Society, vol. 101(407), pages 938-948, July.
  23. Nicolas Ruiz & Alain Trannoy, 2008. "Le caractère régressif des taxes indirectes : les enseignements d'un modèle de microsimulation," Économie et Statistique, Programme National Persée, vol. 413(1), pages 21-46.
  24. Lawrence Goulder, 1995. "Environmental taxation and the double dividend: A reader's guide," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 2(2), pages 157-183, August.
  25. Metcalf, Gilbert E., 1999. "A Distributional Analysis of Green Tax Reforms," National Tax Journal, National Tax Association, vol. 52(n. 4), pages 655-82, December.
  26. Chao, Hung-po & Peck, Stephen, 2000. "Greenhouse gas abatement: How much? and Who pays?," Resource and Energy Economics, Elsevier, vol. 22(1), pages 1-20, January.
  27. Mireille Chiroleu-Assouline & Mouez Fodha, 2005. "Double Dividend with Involuntary Unemployment: Efficiency and Intergenerational Equity," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 31(4), pages 389-403, 08.
  28. Samakovlis, Eva & Huhtala, Anni & Bellander, Tom & Svartengren, Magnus, 2005. "Valuing health effects of air pollution--Focus on concentration-response functions," Journal of Urban Economics, Elsevier, vol. 58(2), pages 230-249, September.
  29. Fiorito, Riccardo & Padrini, Flavio, 2001. " Distortionary Taxation and Labour Market Performance," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 63(2), pages 173-196, May.
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