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Green tax reforms. Understanding the double dividend Hypothesis

Author
Ruocco A., Wiegard W.
Journal/Series
Zeitschrift für Umweltpolitik und Umweltrecht | Vol. 20(2); 171 - 198; 27 p.
Date
1997
Source
IUCN (ID: ANA-060883)
Publisher | Place of publication
Deutscher Fachverlag GmbH | Frankfurt/M., Germany
Language
English
Field of application
International
Subject
Environment gen.
Keyword
Subsidy/incentive
Abstract

This paper deals with the so-called double dividend hypothesis of green tax reforms. First, it graphically illustrates the basic idea in a partial equilibrium context. It develops a simple environmental model for a full employment closed as well as a small open economy with taxes. Using a small scale numerical simulation model it examinesin detail a number of optimal green tax reforms and compute its first and second dividends. The final section offers some tentative policy conclusions