Do Monopolies Justifiably Fear Environmental Tax Reforms?
Author InfoThorsten Bayíndír-Upmann Abstract It is often argued that without tax-exemptions for the production sector environmental tax reforms substantially reduce profits and endanger employment. We challenge this view and investigate the consequences of both a small and alarge tax reform in the case of a monopoly. We show that these suspected effects are unlikely to emerge. Rather the contrary, for a wide range of ex ante tax systems, profits and employ-ment of non-polluting factors increase – and, in this sense, together with a positive environmental effect, a double, or evena triple dividend can often be attained. What we should, however, be concerned about is the effect of a green tax reform on the demand for environmentally harmful factors of production. When the double dividend fails, it frequently does so because the environmental dividend is lost. Download InfoTo our knowledge, this item is not available for download. To find whether it is available, there are three options:
