Environmental fiscal reform and the possibility of triple dividend in European and non-European countries: evidence from a meta-regression analysis

Maxim, Maruf Rahman

doi:10.1007/s10018-020-00273-8

Cited by 9 publications

(10 citation statements)

References 55 publications

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“…However, the TD of GTR has been investigated through numerous simulation studies in other parts of the world. The metaregression analysis of Maxim [22] presents a synthesis of all simulation studies that measure the effects of GTR on CO2 emissions, employment and GDP. The metaregression The paper is organised as follows: Section 2 provides a review of the literature concerning TD and GTR simulation studies in Australia; Section 3 provides an overall summary of the model, details of the database and the simulation designs; Section 4 describes the simulation results and Section 5 presents the concluding remarks and policy implications.…”

Section: Previous Studiesmentioning

confidence: 99%

Section: Previous Studiesmentioning

confidence: 99%

“…As mentioned in the previous section, the guidelines for our GTR simulation scenarios are derived from the work on TD by Maxim [22]. The three major findings from that metaregression study that we test in our simulations in an Australian context are (i) a reduction of payroll taxes having the highest TD potential; (ii) a reduction of other taxes, such as food tax, having a noticeable TD potential and (iii) a mixed tax revenue recycling approach using a reduction of multiple distortionary taxes being TD inducive.…”

Section: Simulation Scenariosmentioning

confidence: 99%

“…The literature on GTR-driven TD is relatively scant compared to the vast literature available on the double dividend hypothesis. Maxim [22] presents a metaregression analysis based on simulation studies concerning GTR, showing high TD potential under specific GTR designs. In our paper, we design simulations based on these findings to test the performance of GTR in Australia.…”

Section: Introductionmentioning

confidence: 99%

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Green Tax Reform in Australia in the Presence of Improved Environment-Induced Productivity Gain: Does It Offer Sustainable Recovery from a Post-COVID-19 Recession?

Maxim

Zander

2020

Sustainability

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Disasters and pandemics such as COVID-19 will change the world in many ways and the road to redemption from the ongoing economic distress may require a novel approach. This paper proposes a path towards economic recovery that keeps sustainability at the forefront. A computable general equilibrium model is used to simulate different green tax reform (GTR) policies for triple dividend (TD), consisting of lower emissions, higher GDP and higher employment. The GTR design consists of an energy tax coupled with one of three tax revenue recycle methods: (i) reduction of payroll tax, (ii) reduction of goods and services tax (GST) and (iii) a mixed-recycling approach. The paper also presents the impact of higher productivity on the tax reform simulations, which is a possible positive externality of lower emissions. The study is based on the Australian economy and the salient findings are twofold: (i) productivity gain in the GTR context improves the GDP and employment outcomes in all three different simulation scenarios and (ii) GST reduction has the highest TD potential, followed by reduction of payroll tax.

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Section: Previous Studiesmentioning

confidence: 99%

Section: Previous Studiesmentioning

confidence: 99%

Section: Simulation Scenariosmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Green Tax Reform in Australia in the Presence of Improved Environment-Induced Productivity Gain: Does It Offer Sustainable Recovery from a Post-COVID-19 Recession?

Maxim

Zander

2020

Sustainability

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“…Besides these price-indexing adjustments, the government may choose to use its newly found eco-tax collections to reduce the public deficit (from the augmented tax burden) or, alternatively, it may choose to preserve the initial tax burden by recycling the eco-tax collections into lower tax rates in other tax categories. The meta-studies in Maxim and Zander (2019) and Maxim (2020) summarize the scope of these environmental tax recycling policies and their degree of success in different case studies for actually enacted or for just simulated eco-tax policies.…”

Section: Introductionmentioning

confidence: 99%

The mitigation potential of eco-taxation on carbon emissions: income effects under downward rigid wages

Sancho

2020

Environ Econ Policy Stud

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Eco-taxation is the preferred market based tool for achieving mitigation of CO 2 emissions and fostering sustainability. It works through tax-induced changes in the price of polluting activities while ideally transferring the environmental cost to emitters and users. The initial eco-tax signaling is transmitted and further amplified to the rest of the economy through the structure of cost interactions. In particular, real-world economies work under wage adjustment rules that reflect downward rigidity in labor costs when facing rising prices. These common rules may in fact affect the mitigation capacity of the eco-tax policies. We study this issue using an interindustry model in which we overcome the classical dichotomy between prices and quantities thanks to the novelty of connecting consumption demand with the changes in private income levels that would follow from the enacted eco-tax. We isolate income effects by keeping the given productive structure of the economy as unaltered as possible. In this sense, the proposed model has a bit of a neo-ricardian flavor. We implement the model and check the mitigation effectiveness of two different eco-tax policies using recent tabular data for the Spanish economy in 2015. The main conclusion is that we would not observe double benefits, even when all eco-tax collections are recycled back into the economy.

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The effects of environmental taxes on environmental pollution and unemployment: A panel co‐integration analysis on the validity of double dividend hypothesis for selected African countries

Değirmenci

Aydin

2021

Int. J Fin Econ

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In this study, the validity of the double dividend hypothesis for several African countries (Cameroon, Ivory Coast, Mali, South Africa, and Uganda) is investigated for the period of 1994–2017. The double dividend hypothesis claims that, in addition to reducing environmental pollution, environmental taxes can also increase employment. In this study, the validity of this hypothesis is examined with panel co‐integration and long‐run estimators. According to the findings obtained, environmental taxes increased environmental degradation and unemployment in Cameroon, environmental degradation in the Ivory coast, environmental degradation and employment in Mali, environmental restoration in South Africa and employment in Uganda. When the individual results obtained from the study are evaluated in general, it can be said that the double dividend hypothesis is not valid for African countries. The study proposes that taxation should be used as a financial incentive rather than a command‐and‐control policy to combat unemployment and environmental degradation.

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Environmental fiscal reform and the possibility of triple dividend in European and non-European countries: evidence from a meta-regression analysis

Abstract: Environmental fiscal reform and the possibility of triple dividend in European and non-European countries: evidence from a meta-regression analysis

Cited by 9 publications

References 55 publications

Green Tax Reform in Australia in the Presence of Improved Environment-Induced Productivity Gain: Does It Offer Sustainable Recovery from a Post-COVID-19 Recession?

Green Tax Reform in Australia in the Presence of Improved Environment-Induced Productivity Gain: Does It Offer Sustainable Recovery from a Post-COVID-19 Recession?

The mitigation potential of eco-taxation on carbon emissions: income effects under downward rigid wages

The effects of environmental taxes on environmental pollution and unemployment: A panel co‐integration analysis on the validity of double dividend hypothesis for selected African countries

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