Economics at your fingertips  

Domestic Environmental Policy and International Factor Mobility: A General Equilibrium Analysis

Stefan Felder and Reto Schleiniger

Swiss Journal of Economics and Statistics (SJES), 1995, vol. 131, issue III, 547-558

Abstract: This paper studies the conditions under which a green tax reform not only benefits the environment but also enhances the efficiency of the tax system. The focus is on the consequences of international factor mobility for the scope of a double dividend. The investigation of the double-dividend claim is based on a general equilibrium model of a stylised small open economy. The simulations of equal-yield tax reform scenarios indicate that an environmental tax on consumption yields a double dividend because the tax burden is partly shifted to transfer income, domestic capital or foreign labour. By contrast, with a tax on energy input the double-dividend claim fails, since the tax burden is mostly borne by domestic labour, resulting in an increase of the distortion in the labour market.

Date: 1995
References: Add references at CitEc
Citations View citations in EconPapers (3) Track citations by RSS feed

Downloads: (external link) (application/pdf)

Related works:
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:

Access Statistics for this article

Swiss Journal of Economics and Statistics (SJES) is currently edited by Rafael Lalive

More articles in Swiss Journal of Economics and Statistics (SJES) from Swiss Society of Economics and Statistics (SSES) Contact information at EDIRC.
Series data maintained by Peter Steiner ().

Page updated 2017-09-29
Handle: RePEc:ses:arsjes:1995-iii-17