Koskela, Erkki; Sinn, Hans-Werner; Schöb, Ronnie - In: German Economic Review 2 (2001) 1, pp. 19-30
This paper studies a revenue-neutral green tax reform that substitutes energy for wage taxes in an open economy with unemployment. As long as the labour tax rate exceeds the energy tax rate, such a reform will increase employment, reduce the domestic firms' unit cost of production and hence...