Environmental Taxes, International Capital Mobility and Inefficient Tax Systems: Tax Burden vs. Tax Shifting
This paper deals with the so-called double dividend of an environmental tax reform. In a model with only labor and a polluting input as factors of production, we find that society faces a trade-off between internalizing environmental externalities and raising revenues in the least distortionary way. However, if capital enters the production structure, an ecological tax reform may render the tax structure more efficient from a non-environmental point of view, thereby raising not only environmental quality but also private incomes.
|Keywords||Capital mobility, Double dividend, Environmental tax reform, Tax burden, Tax shifting|
|Persistent URL||dx.doi.org/1008606824395, hdl.handle.net/1765/11802|
de Mooij, R.A., & Bovenberg, A.L.. (1998). Environmental Taxes, International Capital Mobility and Inefficient Tax Systems: Tax Burden vs. Tax Shifting. International Tax and Public Finance, 7–39. doi:1008606824395