The double dividend in the presence of abatement technologies and local external effects
This study tests whether the strong double dividend hypothesis holds within a setting where a uniform tax on green house gas emissions is raised above the international quota price within the Norwegian economy. The hypothesis does not hold within a framework where detailed technology choices contribute to lower the revenue recycled back to households. The hypothesis, however, holds when local external effects connected to cuing and accidents etc. within the transport sector are taken into consideration. The hypothesis also holds when the international quota price is increased, and oil prices drop in the long run
|Date of creation:||May 2012|
|Date of revision:|
|Contact details of provider:|| Postal: P.O.Box 8131 Dep, N-0033 Oslo, Norway|
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- Parry, Ian W. H. & Williams, Roberton III & Goulder, Lawrence H., 1999.
"When Can Carbon Abatement Policies Increase Welfare? The Fundamental Role of Distorted Factor Markets,"
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- Bas Jacobs & Ruud A. de Mooij, 2011.
"Pigou Meets Mirrlees: On the Irrelevance of Tax Distortions for the Second-Best Pigouvian Tax,"
CESifo Working Paper Series
3342, CESifo Group Munich.
- Jacobs, Bas & de Mooij, Ruud A., 2015. "Pigou meets Mirrlees: On the irrelevance of tax distortions for the second-best Pigouvian tax," Journal of Environmental Economics and Management, Elsevier, vol. 71(C), pages 90-108.
- Bento, Antonio M. & Jacobsen, Mark, 2007. "Ricardian rents, environmental policy and the `double-dividend' hypothesis," Journal of Environmental Economics and Management, Elsevier, vol. 53(1), pages 17-31, January.
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