Recycling of Eco-Taxes, Labor Market Effects and the True Cost of Labor- a CGE Analysis
| dc.creator | Conrad, Klaus | |
| dc.creator | Loschel, Andreas | |
| dc.date | 2017-04-01T20:20:50Z | |
| dc.date.accessioned | 2026-07-09T04:28:06Z | |
| dc.description | 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 on the market price of labor and the other on the user cost of labor. We found a double dividend under the first approach but not under the second one. | |
| dc.identifier | Other:Print ISSN 1514-0326 | |
| dc.identifier | Other:Online ISSN 1667-6726 | |
| dc.identifier | doi:10.22004/ag.econ.37115 | |
| dc.identifier | https://ageconsearch.umn.edu/record/37115/files/conrad.pdf | |
| dc.identifier | http://ageconsearch.umn.edu/record/37115 | |
| dc.identifier.uri | http://hdl.handle.net/123456789/550353 | |
| dc.language | eng | |
| dc.publisher | ||
| dc.source | http://ageconsearch.umn.edu/record/37115 | |
| dc.title | Recycling of Eco-Taxes, Labor Market Effects and the True Cost of Labor- a CGE Analysis | |
| dc.type | Text |