Environmental Taxes, International Capital Mobility and Inefficient Tax Systems: Tax Burden vs. Tax Shifting
International Tax and Public Finance, Vol. 5, No. 1, 1997
Posted: 19 Dec 1997
Abstract
This paper deals with the so-called "double dividend" of an environmental tax reform. Using a model with only labor and polluting inputs as factors of production, we find that society faces a trade-off between internalizing environmental externalities and raising revenues in the least distortionary way. However, if capital enters the production structure, an ecological tax reform may render the tax structure more efficient from a non-environmental point of view, thereby raising not only environmental quality but also private incomes.
JEL Classification: H22, Q28
Suggested Citation: Suggested Citation
De Mooij, Ruud A. and Bovenberg, A. Lans, Environmental Taxes, International Capital Mobility and Inefficient Tax Systems: Tax Burden vs. Tax Shifting. International Tax and Public Finance, Vol. 5, No. 1, 1997, Available at SSRN: https://ssrn.com/abstract=47900
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