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ENVIRONMENTAL TAX AND RETURN URBAN–RURAL MIGRATION

Sheng-Huei Ko (), Kuo-Hsing Kuo (), Cheng-Te Lee and Chen Fang ()
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Sheng-Huei Ko: Department of International Trade, Chinese Culture University, No. 55, Hwa-Kang Road, Yang-Ming-Shan, Taipei City 11114, Taiwan
Kuo-Hsing Kuo: Department of International Trade, Chinese Culture University, No. 55, Hwa-Kang Road, Yang-Ming-Shan, Taipei City 11114, Taiwan
Cheng-Te Lee: Department of International Trade, Chinese Culture University, No. 55, Hwa-Kang Road, Yang-Ming-Shan, Taipei City 11114, Taiwan
Chen Fang: Department of Business, National Open University, No. 172, Zhongzheng Rd., Luzhou Dist., Xinbei City 247, Taiwan

The Singapore Economic Review (SER), 2017, vol. 62, issue 02, 447-458

Abstract: This paper will set up a dynamic adjustment system of a specific-factor model of a closed Harris and Todaros’ (1970) economy to explore the effects of environmental tax on return migration meaning that labor moves back from the manufacturing sector to the agricultural sector. We find that when the government raises environmental tax, return migration would happen and the urban unemployment would decrease.

Keywords: Environmental tax; return urban–rural migration (search for similar items in EconPapers)
Date: 2017
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