assimilates pollution and how pollution affects life on earth. In this paper, an assimilation function is specified that is …

This paper explores the effects of an environmental tax reform on pollution, economic growth and welfare in an … endogenous growth model with pre-existing tax distortions. We find that a shift in the tax mix away from output towards pollution … determines the positive effect of lower aggregate pollution on the productivity of capital. The second channel is a shift in the …