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, a revenue-neutral pollution tax (or auctioned permits) can produce a substantial double dividend by reducing both … pollution and the costs of the tax system. The second dividend arises because the welfare gain from using environmental tax … environmental benefits), the overall costs of a revenue - neutral pollution tax are negative in the benchmark simulations, at least …
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Recent studies find that environmental tax swaps typically exacerbate the costs of the tax system and therefore do not produce a "double dividend". We extend previous models by incorporating tax-favored consumption goods (e.g. housing, medical care). The efficiency gains from recycling...
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While environmental taxes aim at making environmentally harmful behaviour more costly, the opposite is true for environmentally beneficial tax incentives. Tax incentives imply foregone public revenues to favour less polluting consumption and investment activities in order to achieve...
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