Implementing a Double Dividend: Recycling Ecotaxes Towards Lower Labour Taxes

Antonio Manresa and Ferran Sancho

UFAE and IAE Working Papers from Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC)

Abstract: In this paper we follow the tradition of applied general equilibrium modelling of the Walrasian static variety to study the empirical viability of a double dividend (green, welfare, and employment) in the Spanish economy. We consider a counterfactual scenario in which an ecotax is levied on the intermediate and final use of energy goods. Under a revenue neutral assumption, we evaluate the real income and employment impact of lowering payroll taxes. To appraise to what extent the model structure and behavioural assumptions may influence the results, we perform simulations under a range of alternative model and policy scenarios. We conclude that a double dividend –better environmental quality, as measured by reduced CO2 emissions, and improved levels of employment– may be an achievable goal of economic policy.

Keywords: double dividend; tax recycling; ecotaxes (search for similar items in EconPapers)
JEL-codes: C68 H21 H22 (search for similar items in EconPapers)
Pages: 22
Date: 2002-08-31
New Economics Papers: this item is included in nep-ene and nep-pbe
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Journal Article: Implementing a double dividend: recycling ecotaxes towards lower labour taxes (2005)
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Persistent link: https://EconPapers.repec.org/RePEc:aub:autbar:536.02

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