Using the Cointegrated VAR framework, we provide evidence for the US manufacturing sector that the principle of effective demand in a growth context, by which a permanent demand shock has a permanent growth effect, is consistent with the stylized fact of a stationary rate of capacity...

This paper reviews the main transmission channels of an environmental tax reform shifting the tax burden from labour to carbon emission. The analysis uses a simple open-economy macro model and estimates dynamic environmental tax as well as personal income tax multiplier effects on output and...

This paper proposes an objective way of estimating and allocating "differentiated" responsibilities for carbon emissions across countries. These responsibilities translate into specific obligations and incentives for future emission reductions and support for adaptation, mitigation, and...