Environmental Taxation under Productive Differentials: An Efficiency Analysis
In recent years, the pollution tax instrument has become a focus of the environmental policy debate. Many countries are presently considering implementing or increasing the rate of pollution taxes, while pollution abatement subsidies are used by local governments. However, a great part of the literature argues that environmental taxation fails to create a “double-dividend” outcome and leads to a trade off between pollution levels and unemployment. In this context, a simple search and matching model of labour market is developed, where workers are characterized by heterogeneous productive abilities, so as to examine the impact of a pollution tax on employment. Furthermore, an attemption is made in order to determine the efficient level of taxation in the short run, where the assumption of free entry of firms (zero profits) is dropped.
|Date of creation:||18 Mar 2010|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: https://mpra.ub.uni-muenchen.de
More information through EDIRC
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.:
- Bovenberg, A.L. & de Mooij, R.A., 1994.
"Environmental levies and distortionary taxation,"
Other publications TiSEM
4b32deaa-ec2f-4de7-b59b-9, Tilburg University, School of Economics and Management.
- Bovenberg, A Lans & van der Ploeg, Frederick, 1993.
"Green Policies in a Small Open Economy,"
CEPR Discussion Papers
785, C.E.P.R. Discussion Papers.
- P. Diamond, 1980.
"Aggregate Demand Management in Search Equilibrium,"
268, Massachusetts Institute of Technology (MIT), Department of Economics.
- van Ours, J.C. & Ridder, G., 1992. "Vacancies and recruitment of new employees," Other publications TiSEM 9acc708a-0885-46a2-aef5-7, Tilburg University, School of Economics and Management.
- van Ours, Jan & Ridder, Geert, 1992. "Vacancies and the Recruitment of New Employees," Journal of Labor Economics, University of Chicago Press, vol. 10(2), pages 138-55, April.
- Bovenberg, A Lans & van der Ploeg, Frederick, 1994. " Green Policies and Public Finance in a Small Open Economy," Scandinavian Journal of Economics, Wiley Blackwell, vol. 96(3), pages 343-63.
- Jon Strand, 1999.
"Efficient Environmental Taxation Under Worker-Firm Bargaining,"
Environmental & Resource Economics,
European Association of Environmental and Resource Economists, vol. 13(2), pages 125-141, March.
- Strand, J., 1995. "Efficient Environmental Taxation Under Worker-Firm Bargaining," Memorandum 19/1995, Oslo University, Department of Economics.
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:21861. 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: (Ekkehart Schlicht)
If references are entirely missing, you can add them using this form.