Performing an Environmental Tax Reform in a Regional Economy: A Computable General Equilibrium Approach
We use a Computable General Equilibrium model to simulate the effects of an Environmental Tax Reform in a regional economy (Andalusia, Spain). The reform involves imposing a tax on CO2 or SO2 emissions and reducing either the Income Tax or the payroll tax of employers to Social Security, and eventually keeping public deficit unchanged. This approach enables us to test the so-called double dividend hypothesis, which states that this kind of reform is likely to improve both environmental and non-environmental welfare. In the economy under analysis, an employment double dividend arises when the payroll tax is reduced and, if CO2 emissions are selected as environmental target, a (limited) strong double could also be obtained. No double dividend appears when Income Tax is reduced to compensate the environmental ta
Year of publication: |
2004-08-11
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Authors: | André, Francisco J. ; Cardenete, M. Alejandro |
Institutions: | Society for Computational Economics - SCE |
Subject: | Environmental Rax Reform | Computable General Equilibrium | Double Dividend |
Saved in:
freely available
Extent: | application/pdf |
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Series: | |
Type of publication: | Book / Working Paper |
Notes: | The text is part of a series Computing in Economics and Finance 2004 Number 115 |
Classification: | D58 - Computable and Other Applied General Equilibrium Models ; H21 - Efficiency; Optimal Taxation ; H23 - Externalities; Redistributive Effects ; Environmental Taxes and Subsidies |
Source: |
Persistent link: https://www.econbiz.de/10005345359