Double dividend, dynamic Laffer effects and public abatement

In a very stylized endogenous growth economy with pollution and public abatement activities and without any production externality, we show that the government may exploit dynamic Laffer effects to achieve a double dividend through an environmental tax reform, while fulfilling its commitment to provide an exogenously specified sequence of expenditures in the form of lump-sum transfers to consumers.

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Year of publication:	2010
Authors:	Fernández, Esther ; Pérez, Rafaela ; Ruiz, Jesús
Published in:	Economic Modelling. - Elsevier, ISSN 0264-9993. - Vol. 27.2010, 3, p. 656-665
Publisher:	Elsevier
Keywords:	Double dividend Environmental tax Income tax Public abatement Pigouvian tax Dynamic Laffer effects

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Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10008507174