Tax Reform, Structural Unemployment and the Environment

Lans Bovenberg and Frederick (Rick) van der Ploeg

Scandinavian Journal of Economics, 1998, vol. 100, issue 3, 593-610

Abstract: The effects of environmental tax reform, i.e., using the proceeds of a higher energy tax rate to lower the labour tax rate, on wage formation, employment and environmental quality are analysed in the context of a small open economy with structural unemployment caused by hiring costs. We find that such a reform may boost employment if it shifts the tax burden away from workers towards those without employment in the formal sector. Environmental tax reform succeeds in shifting the tax burden away from workers in the formal sector if higher energy taxes reduce earnings in the informal sector by reducing labour productivity.

Date: 1998
References: Add references at CitEc
Citations: View citations in EconPapers (74)

Downloads: (external link)
https://doi.org/10.1111/1467-9442.00124

Related works:
Chapter: Tax Reform, Structural Unemployment and the Environment (2002)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:scandj:v:100:y:1998:i:3:p:593-610

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0347-0520

Access Statistics for this article

Scandinavian Journal of Economics is currently edited by Richard Friberg, Matti Liski and Kjetil Storesletten

More articles in Scandinavian Journal of Economics from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().