Felder, Stefan; Schleiniger, Reto:
Optimal Differentiation of International Environmental Taxes in the Presence of National Labor Market Distortions
2000
In: Environmental and Resource Economics, Jg. 15 (2000), Heft 1, S. 89 - 102
Artikel/Aufsatz in Zeitschrift / Fach: Wirtschaftswissenschaften
Titel:
Optimal Differentiation of International Environmental Taxes in the Presence of National Labor Market Distortions
Autor(in):
Felder, Stefan im Online-Personal- und -Vorlesungsverzeichnis LSF anzeigen; Schleiniger, Reto
Erscheinungsjahr
2000
Erschienen in:
Environmental and Resource Economics, Jg. 15 (2000), Heft 1, S. 89 - 102

Abstract:

We explore the implication of the `doubledividend' debate for international environmentaltaxes. In our scenario, small open economies withdifferent labor market distortions follow a commonenvironmental policy and use national environmentaltax revenues to finance labor tax cuts. Since thedouble dividend hypothesis does not hold, a high labortax implies a low environmental tax relative to othercountries. The optimal differentiation ofinternational environmental taxes is proven to be afunction of the national labor tax rates and theuncompensated elasticities of labor supply.