Reconciling environmental policy with employment, international competitiveness and participation requirements
We argue that a conventional double dividend policy - defined as reduction of greenhouse gas emissions and unemployment through taxation of energy and CO2 emissions and subsidization of wage costs - and the aim of keeping international competitiveness intact are mutually exclusive concepts. It is suggested that a double dividend policy that aims at reducing GHG emissions and unemployment without violation of international competitiveness has to tax energy use and CO2 emissions of households and should use the revenues to subsidize investment in energy-saving technologies to reduce marginal costs of firms. Reduction of energy coefficients lowers marginal costs and prices and therefore increases competitiveness and employment in an environmentally friendly way and may induce other parts of the world to participate in GHG emission reduction policies. According to this proposal the principle of causation has to be dropped nationally but not internationally.
|Date of creation:||1995|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: (31) (0)43 3883875
Fax: (31) (0)43 3216518
Web page: http://www.maastrichtuniversity.nl/
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.:
- Richard G. Newell & Adam B. Jaffe & Robert N. Stavins, 1998.
"The Induced Innovation Hypothesis and Energy-Saving Technological Change,"
NBER Working Papers
6437, National Bureau of Economic Research, Inc.
- Richard G. Newell & Adam B. Jaffe & Robert N. Stavins, 1999. "The Induced Innovation Hypothesis And Energy-Saving Technological Change," The Quarterly Journal of Economics, MIT Press, vol. 114(3), pages 941-975, August.
- Stavins, Robert & Jaffe, Adam & Newell, Richard, 1998. "The Induced Innovation Hypothesis and Energy-Saving Technological Change," Discussion Papers dp-98-12-rev, Resources For the Future.
- Carlo Carraro & Domenico Siniscalco, 1992.
"Environmental innovation policy and international competition,"
Environmental & Resource Economics,
European Association of Environmental and Resource Economists, vol. 2(2), pages 183-200, March.
- Carraro, Carlo & Siniscalco, Domenico, 1991. "Environmental Innovation Policy and International Competition," CEPR Discussion Papers 525, C.E.P.R. Discussion Papers.
- Jan Velthuijsen, 1993. "Incentives for investment in energy efficiency: an econometric evaluation and policy implications," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 3(2), pages 153-169, April.
- Catherine J. Morrison, 1989. "Unraveling the Productivity Growth Slowdown in the U.S., Canada and Japan: The Effects of Subequilibrium, Scale Economies and Markup," NBER Working Papers 2993, National Bureau of Economic Research, Inc.
- Aw, Bee Yan, 1992. "An empirical model of mark-ups in a quality-differentiated export market," Journal of International Economics, Elsevier, vol. 33(3-4), pages 327-344, November.
- Soete Luc & Ziesemer Thomas, 1997. "Gains from trade and environmental policy under imperfect competition and pollution from transport," Research Memorandum 003, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).
- Hairault, Jean-Olivier & Portier, Franck, 1993.
"Money, New-Keynesian macroeconomics and the business cycle,"
European Economic Review,
Elsevier, vol. 37(8), pages 1533-1568, December.
- Hairault, J.O. & Portier, F., 1992. "Money New-Keynesian Macroeconomics and the Business Cycles," Papiers d'Economie MathÃ©matique et Applications 92.32, UniversitÃ© PanthÃ©on-Sorbonne (Paris 1).
- Deaton, A. S., 1975. "The measurement of income and price elasticities," European Economic Review, Elsevier, vol. 6(3), pages 261-273, July.
- Catherine J. Morrison, 1990. "Market Power, Economic Profitability and Productivity Growth Measurement: An Integrated Structural Approach," NBER Working Papers 3355, National Bureau of Economic Research, Inc.
- Michaelis, P., 1999. "Sustainable greenhouse policies: the role of non-CO2 gases," Structural Change and Economic Dynamics, Elsevier, vol. 10(2), pages 239-260, June.
- Maddala, G S, et al, 1997. "Estimation of Short-Run and Long-Run Elasticities of Energy Demand from Panel Data Using Shrinkage Estimators," Journal of Business & Economic Statistics, American Statistical Association, vol. 15(1), pages 90-100, January.
- George Kouris, 1983. "Energy Demand Elasticities in Industrialized Countries: A Survey," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3), pages 73-94.
- Bresnahan, Timothy F., 1989. "Empirical studies of industries with market power," Handbook of Industrial Organization, in: R. Schmalensee & R. Willig (ed.), Handbook of Industrial Organization, edition 1, volume 2, chapter 17, pages 1011-1057 Elsevier.
- Dixit, Avinash K & Stiglitz, Joseph E, 1975.
"Monopolistic Competition and Optimum Product Diversity,"
The Warwick Economics Research Paper Series (TWERPS)
64, University of Warwick, Department of Economics.
- Dixit, Avinash K & Stiglitz, Joseph E, 1977. "Monopolistic Competition and Optimum Product Diversity," American Economic Review, American Economic Association, vol. 67(3), pages 297-308, June.
- Solow, John L, 1987. "The Capital-Energy Complementarity Debate Revisited," American Economic Review, American Economic Association, vol. 77(4), pages 605-14, September.
- Hongyi Li & G. S. Maddala, 1999. "Bootstrap Variance Estimation Of Nonlinear Functions Of Parameters: An Application To Long-Run Elasticities Of Energy Demand," The Review of Economics and Statistics, MIT Press, vol. 81(4), pages 728-733, November.
When requesting a correction, please mention this item's handle: RePEc:unm:umamer:1995016. 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: (Charles Bollen)
If references are entirely missing, you can add them using this form.