In the contemporary discussion on society's transformation towards long-term climate targets, it is often implicitly assumed that behavioral changes, unlike technological changes, would lead to reductions in human well-being. However, this assumption has been questioned by researchers, who...

This paper examines a revenue neutral green tax reform along the lines of the Double Dividend hypothesis. Using a dynamic general equilibrium model calibrated to the US economy, we find that increasing gasoline taxes and using the revenue to reduce capital income taxes does indeed deliver both...