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| Conrad, Klaus; Loschel, Andreas. |
| Computable general equilibrium (CGE) modeling has provided a number of important insights about the interplay between environmental tax policy and the pre-existing tax system. In this paper, we emphasize that a labor market policy of recycling tax revenues from an environmental tax to lower employers’ non-wage labor cost depends on how the costs of labor are modeled. We propose an approach, which combines neoclassical substitutability and fixed factor proportions. Our concept implies a user cost of labor which consists of the market price of labor plus the costs of inputs associated with the employment of a worker. We present simulation results based on a CO2 tax and the recycling of its revenues to reduce the non-wage labor cost. One simulation is based... |
| Tipo: Journal Article |
Palavras-chave: Market-based environmental policy; Carbon taxes; Double dividend; Computable general equilibrium modeling; D58; J30; Q25. |
| Ano: 2005 |
URL: http://purl.umn.edu/37115 |
