Mooij, Ruud de; Bovenberg, A. - In: International Tax and Public Finance 5 (1998) 1, pp. 7-39
This paper deals with the so-called ‘double dividend’ of an environmental tax reform. In a model with only labor and a polluting input as factors of production, we find that society faces a trade-off between internalizing environmental externalities and raising revenues in the least...