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Title:The double dividend hypothesis in a CGE model: Specific factors and variable labour supply PDF Logo
Authors:Fraser, Iain
Waschik, Robert
Issue Date:2010
Series/Report no.:School of Economics discussion papers 10,01
Abstract:Employing a CGE model we examine the Double Dividend (DD) hypothesis for Australia and UK. Following Bento and Jacobsen (2007), we analyze specific factors in the production of energy goods and the impact on the DD. By incorporating endogenous labour supply we examine the labour market effect of targeted abatement policies. For Australia the DD is significantly larger with the specific factor characterisation of the economy when recycling revenue through reductions in consumption taxes, but there is no evidence of a DD when employing income tax. We find minimal evidence of a DD for UK for either recycling instrument.
Subjects:environmental taxes
double dividend
specific factors
JEL:Q52
Q48
C68
Document Type:Working Paper
Appears in Collections:School of Economics Discussion Papers, University of Kent

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