Double Dividend Environmental Taxation and Canadian Carbon Emissions Control

Ross McKitrick

Canadian Public Policy, 1997, vol. 23, issue 4, 417-438

Abstract: The possibility of using revenues from environmental taxes to reduce other distortions in the tax system (the so-called double dividend approach) has been discussed recently. This paper reviews the current debate and presents empirical evidence to suggest that the double dividend approach can significantly reduce the cost of CO2 emissions control in Canada and possibly eliminate aggregate welfare and output reductions due to implementation of a carbon tax.

Date: 1997
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