Tax mix change to reduce greenhouse gas emissions

John Freebairn

Australian Journal of Agricultural and Resource Economics, 2012, vol. 56, issue 01, 15

Abstract: A pollution tax or emissions trading scheme places a price on greenhouse gas emissions. This price also is an additional indirect tax and a government revenue windfall. To restore distributional equity, to avoid compounding the efficiency costs of existing distorting taxes and to maintain macroeconomic stability, it is argued that most of the revenue windfall be recycled to households as lower income tax rates and higher social security payments. As the carbon price rises over time, new and larger tax mix change packages will be required.

Keywords: Environmental; Economics; and; Policy (search for similar items in EconPapers)
Date: 2012
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Related works:
Journal Article: Tax mix change to reduce greenhouse gas emissions (2012)
Working Paper: A Tax Mix Change to Reduce Greenhouse Gas Emissions (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aareaj:204171

DOI: 10.22004/ag.econ.204171

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