Performing an Environmental Tax Reform in a Regional Economy
A Computable General Equilibrium model is used to simulate the effects of an Environmental Tax Reform in a regional economy (Andalusia, Spain). The reform involves imposing a tax on CO2 or SO2 emissions and reducing the payroll tax of employers to Social Security or the Income Tax, keeping public de...
| Authors: | , , |
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| Format: | article |
| Publication Date: | 2005 |
| Country: | España |
| Institution: | Universidad Loyola Andalucía |
| Repository: | Brújula |
| OAI Identifier: | oai:repositorio.uloyola.es:20.500.12412/3945 |
| Online Access: | https://hdl.handle.net/20.500.12412/3945 |
| Access Level: | Open access |
| Keyword: | Environmental tax reforms Computable general equilibrium Double dividend |
| Summary: | A Computable General Equilibrium model is used to simulate the effects of an Environmental Tax Reform in a regional economy (Andalusia, Spain). The reform involves imposing a tax on CO2 or SO2 emissions and reducing the payroll tax of employers to Social Security or the Income Tax, keeping public deficit unchanged. This approach is capable of testing the so-called double dividend hypothesis, according to which, this kind of reform is likely to improve both environmental and nonenvironmental welfare. In the economy under analysis, an employment double dividend arises when the payroll tax is reduced and, if CO2 emissions are selected as environmental target, a (limited) strong double could be also obtained. No double dividend appears when Income Tax is reduced to compensate the environmental tax. |
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