By A. Lans Bovenberg, Ruud A. De Mooij (auth.), Carlo Carraro, Domenico Siniscalco (eds.)
The eu Union faces a number of interlinked demanding situations: the way to shield the surroundings and favour sustainability; tips to decrease unemployment and foster competitiveness in a context of transforming into globalization; the right way to lessen neighborhood disparities between and inside of me mb er international locations. the new coverage debate has clarified that the above pursuits usually are not a alternate off if together tackled. specifically, win-win coverage recommendations can be found to the ecu Union via a suitable integration of rules, macro coverage, social coverage, monetary coverage and environmental coverage. facts indicates that optimising on each one unmarried coverage won't meet the desires of the eu Union. to the contrary, an built-in strategy will give the chance to arrive a number of the pursuits, as acknowledged within the Treaty on eu Union, within the fifth Environmental motion Programme, within the White Paper on development, Competitiveness and Employment. This built-in procedure could im plement a real sustainable improvement policy.
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Additional info for Environmental Fiscal Reform and Unemployment
E. e. the profit tax). A rise in the pollution tax. 2. We discuss the reduced-form coefficients in this column by considering different initial equilibria. Starting from a 100% profit tax and a zero pollution tax. e. 2 reveals that a shift from labor towards pollution taxes leaves private income unchanged. The reason is that the owners of the fixed factor receive zero profit income and thus cannot bear the burden of taxation. In fact, the government receives the return on the fixed factor by imposing a 100% profit tax and, therefore, bears the full burden of lower profit incomes.
In the normal case, substitution effects dominate output effects so that the demand for capital expands while the demand for the polluting input contracts. Consequently, both the tax shifting effect and the tax burden effect are positive. e. e. the tax burden effect). A doubledividend requires that the initial capital tax is large compared to the initial pollution tax. Intuitively, large initial capital taxes indicate a substantial potential for non-environmental efficiency improvements while small initial pollution taxes imply that environmental improvements are relatively cheap.
Similar to sections 3 and 4, this term declines with the MCPF. e. 4». 4) reveal that the revenue-raising elements of labor and pollution taxes depend on the elasticities of pollution and labor demand and the elasticity of labor supply. In order to obtain so me more intuition behind the optimal tax formula's we first explore two special cases, namely the case in wh ich profits cannot bear the burden of taxation and the case in which labor is supplied with infinite elasticity. Optimal taxes if profits cannot bear the burden of taxation.
Environmental Fiscal Reform and Unemployment by A. Lans Bovenberg, Ruud A. De Mooij (auth.), Carlo Carraro, Domenico Siniscalco (eds.)