Green Taxes: A Note on the Double Dividend and the Optimal Tax Rate

Vidar Christiansen

No 107, CESifo Working Paper Series from CESifo

Abstract: The simplest pedagogical tools are employed to clarify that there is a double dividend from shifting the tax policy towards green taxes only if taxes were not set optimally before the environmental concern was put on the agenda. In general a single or less than single dividend cannot be ruled out. The note revisits the result of Sandmo (1975) that the second best optimal tax on a dirty commodity can be interpreted as being composed of a fiscal and an environmental part, and shows how the latter can be derived from a simple cost-benefit trade-off.

Date: 1996
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.cesifo.org/DocDL/ces_wp107.pdf (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: https://EconPapers.repec.org/RePEc:ces:ceswps:_107

Access Statistics for this paper

More papers in CESifo Working Paper Series from CESifo Contact information at EDIRC.
Bibliographic data for series maintained by Klaus Wohlrabe ().