The paper proposes a theoretical analysis illustrating some key policy trade-offs involved in the implementation of a rules-based fiscal framework reminiscent of the Stability and Growth Pact (SGP). The analysis offers some insights on the current debate about the SGP. Specifically, greater...

The employment 'double dividend hypothesis' suggests that an appropriately designed fiscal reform, in which emission charges are used to subsidize employers' social security contributions, may realize (at least) two relevant policy goals: a better quality of the environment and, at the same...

It is often argued that policies designed to protect the environment may harm economic growth. Moreover, if introduced unilaterally by a given country, they may reduce the competitiveness of domestic firms. These arguments are generally based on the assumption that environmental protection has...