This paper investigates the economic impacts of environmental tax reforms designed to reach given emission reduction targets for the German economy. Our focus is on the efficiency and employment implications of alternative schemes for emission tax differentiation between the production sector...

This paper studies the effect of foreign direct investment (FDI) on environmental policy stringency in a two-country model with trade costs, where FDI could be unilateral and bilateral and both governments address local pollution through environmental taxes. We show that FDI does not give rise...

This paper focuses on the relationship between tax reforms and environmental quality in Italy. First, we analyse some of the characteristics of the tax system. Within a dynamic model, we estimate the marginal distortion introduced by different taxes and show that the system is far from being...

We find a limited parallel between lump-sum taxes and environmental taxes. Corollary 2, which extends Sandmo’s observation, shows that appropriated corrective revenues have the same non-distortionary effects as lump-sum taxes, the result reducing to the original observation when the...

During the last couple of decades, there has been a large literature discussing how the properties of emission taxes are affected by the existence of distortionary taxes. Most of this literature ignores distributional aspects of environmental taxes and other types of environmental policy...

There are studies that suggests that the use of environmental taxes to promote the consumption of “clean goods” could have unwanted effects in that it leads to the consumption of “dirty goods”. The results will depend on the multiple effects of cross-price elasticities. This paper...

By using estimates from an Almost Ideal Demand System (AIDS), we investigate how the German energy tax on car fuels changes the private households-CO2 emissions, living standards, and post-tax income distribution. Our results show that the tax implies a trade-off between the aim to reduce...

This paper provides a concrete example of how policy analysts can use empirical programme evaluation studies to perform ex-post assessments of environmentally related tax policies. A number of studies credibly identify causal effects of environmentally related tax policies, but do not...