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Jobs and climate policy: Evidence from British Columbia's revenue-neutral carbon tax

Akio Yamazaki ()

Journal of Environmental Economics and Management, 2017, vol. 83, issue C, 197-216

Abstract: This paper examines the employment impact of British Columbia's revenue-neutral carbon tax implemented in 2008. While all industries appear to benefit from the redistributed tax revenues, the most carbon-intensive and trade-sensitive industries see employment fall with the tax, while clean service industries see employment rise. By aggregating across industries I find the BC carbon tax generated, on average, a small but statistically significant 0.74 percent annual increases in employment over the 2007–2013 period. This paper provides initial evidence showing how a revenue-neutral carbon tax may not adversely affect employment.

Keywords: Environmental regulation; Carbon tax; Employment; Unilateral climate policy (search for similar items in EconPapers)
JEL-codes: E24 H23 J2 Q5 (search for similar items in EconPapers)
Date: 2017
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jeeman:v:83:y:2017:i:c:p:197-216

DOI: 10.1016/j.jeem.2017.03.003

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Journal of Environmental Economics and Management is currently edited by M.A. Cole, A. Lange, D.J. Phaneuf, D. Popp, M.J. Roberts, M.D. Smith, C. Timmins, Q. Weninger and A.J. Yates

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