Double dividend, dynamic Laffer effects and public abatement

Esther Fernández, Rafaela Perez and Jesus Ruiz

Economic Modelling, 2010, vol. 27, issue 3, 656-665

Abstract: In a very stylized endogenous growth economy with pollution and public abatement activities and without any production externality, we show that the government may exploit dynamic Laffer effects to achieve a double dividend through an environmental tax reform, while fulfilling its commitment to provide an exogenously specified sequence of expenditures in the form of lump-sum transfers to consumers.

Keywords: Double; dividend; Environmental; tax; Income; tax; Public; abatement; Pigouvian; tax; Dynamic; Laffer; effects (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (6)

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