This theoretical note examines the usefulness of the Pigouvian tax policy in dealing with negative production externalities and in improving social welfare in a small developing economy. A two-sector, full-employment general equilibrium model with exogenous labour market imperfection is used for...

The trade off between investing in energy savings in single family houses and investing in more expensive heating technologies with low variable costs has been modelled for a number of building and consumer categories in Denmark. The households have an option to combine their primary heating...

A three-sector, three-factor general equilibrium model is developed for a small open developing economy where an inflow of foreign capital generates externalities in the presence of a non-traded final commodity. There are two types of capital and the efficiency of labour depends positively on...

This paper analyses the combination of taxes and subsidies as an instrument to ensure a reduction of CO2 emission. The objective of the study is to compare recycling of a CO2 tax revenue as a subsidy to biomass use as opposed to traditional recycling like reduced income or corporate taxation. A...