Hadjidema, Stamatina and Eleftheriou, Konstantinos (2010): Environmental Taxation under Productive Differentials: An Efficiency Analysis.
Download (98kB) | Preview
In recent years, the pollution tax instrument has become a focus of the environmental policy debate. Many countries are presently considering implementing or increasing the rate of pollution taxes, while pollution abatement subsidies are used by local governments. However, a great part of the literature argues that environmental taxation fails to create a “double-dividend” outcome and leads to a trade off between pollution levels and unemployment. In this context, a simple search and matching model of labour market is developed, where workers are characterized by heterogeneous productive abilities, so as to examine the impact of a pollution tax on employment. Furthermore, an attemption is made in order to determine the efficient level of taxation in the short run, where the assumption of free entry of firms (zero profits) is dropped.
|Item Type:||MPRA Paper|
|Original Title:||Environmental Taxation under Productive Differentials: An Efficiency Analysis|
|Keywords:||pollution; search; taxes; unemployment|
|Subjects:||H - Public Economics > H2 - Taxation, Subsidies, and Revenue > H21 - Efficiency ; Optimal Taxation
H - Public Economics > H2 - Taxation, Subsidies, and Revenue > H23 - Externalities ; Redistributive Effects ; Environmental Taxes and Subsidies
|Depositing User:||Konstantinos Eleftheriou|
|Date Deposited:||07. Apr 2010 01:39|
|Last Modified:||23. Sep 2015 01:55|
Bovenberg A. L. and De Mooij R. A. (1994). Environmental Levies and Distortionary Taxation, American Economic Review, 84, 1085–1089.
Bovenberg A. L. and Der Ploeg F. van (1994a). Optimal Taxation, Public Goods, and Environmental Policy with Involuntary Unemployment, Journal of Public Economics, 55, 349–390.
Bovenberg A. L. and Der Ploeg F. van (1994b). Green Policies and Public Finance in a Small Open Economy, Scandinavian Journal of Economics, 96, 343–363.
Burdett K. (2001). A Note on the Distribution of Wages and Worker Heterogeneity, mimeo, Essex, University of Essex.
Diamond P. A. (1982). Aggregate Demand Management in Search Equilibrium, Journal of Political Economy, 90, 881-894.
Goulder L. H. (1995). Environmental Taxation and the “Double Dividend”: A Reader’s Guide, International Tax and Public Finance, 2, 157–184.
Lockwood B. (1986). Transferable Skills, Job Matching, and the Inefficiency of the Natural Rate of Unemployment, The Economic Journal, 96, 961-974.
Mortensen D. T. (1980). The Matching Process as a Noncooperative Game. In: McCall JJ (Eds),The Economics of Information and Uncertainty, Chicago, University of Chicago.
Ours J. van and Ridder G. (1992). Vacancies and the Recruitment of New Employees, Journal of Labour Economics, 10, 138-155.
Pigou A. C. (1920). The Economics of Welfare, Weidenfeld and Nicolson, London.
Pissarides C. A. (1990). Equilibrium Unemployment Theory, Basil Blackwell, London.
Strand J. (1999). Efficient Environmental Taxation Under Worker-Firm Bargaining, Environmental and Resource Economics, 13, 125-141.