Germany has committed itself to reducing its carbon emissions by 25 percent in 2005 as compared to 1990 emission levels. To achieve this goal, the government has recently launched an environmental tax reform which entails a continuous increase in energy taxes in conjunction with a...

In this paper, we investigate whether an environmental tax reform 'cum' joint implementation (JI) provides employment and overall efficiency gains as compared to an environmental tax reform 'stand-alone' (ETR). We address this question in the framework of a large-scale general equilibrium model...