Environmental Taxes and Productivity: Lessons from Canadian Manufacturing
Akio Yamazaki ()
No 19-32, GRIPS Discussion Papers from National Graduate Institute for Policy Studies
This paper investigates how environmental taxes affect manufacturing productivity by examining British Columbia's revenue-neutral carbon tax. I develop a new hypothesis the "Productivity Dividend Hypothesis" to show that environmental taxes can positively affect productivity by recycling tax revenues to reduce corporate income taxes. This revenue-recycling increases investment and could raise productivity more than environmental taxes lower productivity by diverting resources from production. I evaluate this hypothesis using detailed confidential plant-level data. I find that the carbon tax lowers productivity, although this is offset to some extent by the revenue-recycling. For some plants, the policy generates a net gain in productivity.
Pages: 49 pages
New Economics Papers: this item is included in nep-eff, nep-ene, nep-env and nep-pbe
References: Add references at CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
https://grips.repo.nii.ac.jp/?action=repository_ac ... bute_id=20&file_no=1 (application/pdf)
Journal Article: Environmental taxes and productivity: Lessons from Canadian manufacturing (2022)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:ngi:dpaper:19-32
Access Statistics for this paper
More papers in GRIPS Discussion Papers from National Graduate Institute for Policy Studies Contact information at EDIRC.
Bibliographic data for series maintained by ().