Environmental tax reform and endogenous growth
Article Abstract:
The relationship between distortionary income taxes and environmental externalities is analyzed using a dynamic model of endogenous growth. Environmental tax reform is shown to increase growth and private welfare through two channels. One is an environmental production externality that is connected with environmental influence as a public production factor. The other is a transfer of the tax burden from capital accumulation return to profits. An optimal environmental tax differs from the Pigovian level in a second-best world having distortionary taxes.
Publication Name: The Journal of Public Economics
Subject: Government
ISSN: 0047-2727
Year: 1997
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Optimal taxation, public goods and environmental policy with involuntary employment
Article Abstract:
Ambitious environmental policies and higher tax rates are deleterious to employment levels. A second-best framework was utilized to determine the effects of environmental policies on the cost of financing non-environmental public goods and involuntary unemployment. The demand for labor is also reduced by non-distortionary taxation because it increases overall tax burden and wage costs. Increases in employment levels and public consumption are produced only if initial environmental concerns are small.
Publication Name: The Journal of Public Economics
Subject: Government
ISSN: 0047-2727
Year: 1996
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Environmental tax policy and intergenerational distribution
Article Abstract:
The enforcement of environmental taxation may prove to be difficult due to the related intergenerational distributional effects. Older generations experience losses in non-environmental welfare due to lesser capital income. Younger generations tend to experience lesser losses because they depend less on capital income. Future generations are expected to obtain the greatest gain in terms of environmental welfare because they are born into a cleaner world.
Publication Name: The Journal of Public Economics
Subject: Government
ISSN: 0047-2727
Year: 1998
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