Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/155169
Authors: 
Oueslati, Walid
Year of Publication: 
2001
Series/Report no.: 
Nota di Lavoro, Fondazione Eni Enrico Mattei 6.2001
Abstract: 
This paper analyses environmental fiscal policy within a two-sector endogenous growth model with elastic labour supply. Pollution is modelled as a side product of production. The framework allows us to analyse the consequences of an environmental tax on the economic dynamics. Both transitional dynamics and balanced growth path are computed and the response to an environmental tax change is explored. Short-run and long-run welfare costs are computed too. We show that an environmental tax change induces a sharp contrast between short-run and long-run effects. The magnitude of this contrast depends on the agents' aptitude to substitute studying time for leisure.
Subjects: 
Endogenous growth
human capital
environmental externality
environmental tax
transitional dynamics
welfare cost
JEL: 
E62
I21
H22
Q28
O41
D62
Document Type: 
Working Paper

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