Tax mix change to reduce greenhouse gas emissions

A pollution tax or emissions trading scheme places a price on greenhouse gas emissions. This price also is an additional indirect tax and a government revenue windfall. To restore distributional equity, to avoid compounding the efficiency costs of existing distorting taxes and to maintain macroeconomic stability, it is argued that most of the revenue windfall be recycled to households as lower income tax rates and higher social security payments. As the carbon price rises over time, new and larger tax mix change packages will be required.


Issue Date:
2012-03
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/204171
Published in:
Australian Journal of Agricultural and Resource Economics, Volume 56, Issue 1
Page range:
102-116
Total Pages:
15




 Record created 2017-04-01, last modified 2017-08-28

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