Fernández, Esther; Sánchez, Rafaela Pérez; Ruiz, Jesús - Centro de Estudios Andaluces, Government of Andalusia - 2004
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...