The global financial crisis has prompted economists to rethink fundamental questions on how governments should intervene in the financial sector. Many countries have already begun to reform the taxation and regulation of the financial sector—in the United States, for example, the Dodd–Frank...

Environmental Taxation and the Double Dividend explores the welfare effects of environmental taxes in a second-best framework. It starts from a benchmark model which reveals that environmental taxes typically exacerbate pre-existing tax distortions, even if the revenues are used to cut other...