Decoupling: Is there a Separate Contribution from Environmental Taxation

Adrian Muller (), Åsa Löfgren and Thomas Sterner

No 486, Working Papers in Economics from University of Gothenburg, Department of Economics

Abstract: Decoupling is a crucial topic in the analysis of sustainable development. Without decoupling, continuing and increasing economic growth in developed and developing countries would come with ever increasing environmental pressures, unavoidably destroying the carrying capacity of ecosystems with corresponding detrimental effects on the environment and societies. The prime example today is climate change. If we do not succeed in drastically decoupling greenhouse gas emissions from economic growth, the mitigation goals necessary to avoid catastrophic impacts will never be reached. Due to this importance of decoupling, it is thus essential to know how different policy instruments may support its achievement. The aim of this paper is to address the question whether there is a separate contribution from environmental taxation to decoupling and to offer researchers some guidance on how to optimally address this question.

Keywords: decoupling; environmental taxation; pollution (search for similar items in EconPapers)
JEL-codes: O40 Q50 Q58 (search for similar items in EconPapers)
Pages: 26 pages
Date: 2011-01-26
New Economics Papers: this item is included in nep-agr, nep-ene, nep-env and nep-res
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