English, Article, Journal or magazine article edition: Double Dividend in an Endogenous Growth Model with Pollution and Abatement Esther Fernández; Rafaela Pérez Sánchez; Jesús Ruiz

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Bookmark: http://trove.nla.gov.au/version/183174
Physical Description
  • preprint
Language
  • English

Edition details

Title
  • Double Dividend in an Endogenous Growth Model with Pollution and Abatement
Author
  • Esther Fernández
  • Rafaela Pérez Sánchez
  • Jesús Ruiz
Physical Description
  • preprint
Notes
  • This paper discusses wether by implementing an environmental tax reform, a government may achieve a double dividend. We consider the simplest endogenous growth model (AK model) and include a negative environmental externality in the utility function. Pollution flow can be reduced by means of private abatenment activities. There is a predetermined non-optimal level of public spending financed by environmental taxes and pre-existing taxes on income and consumption. The major contribution of the paper is to show that, under this simple framework, a double dividend may arise if tax reform consists of substituing environmental tax for income tax, in such a way that the government budget constraint holds in a present value sense.
  • Environmental tax reform, Double dividend, Abatement activities.
  • RePEc:cea:doctra:e2004_15
Language
  • English
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