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Author:Lans Bovenberg, A.
Ploeg, F. van der
Title:Optimal taxation, public goods and environmental policy with involuntary unemployment
Journal:Journal of Public Economics
1996 : 62:1/2, p. 59-84
Index terms:ECONOMICS
UNEMPLOYMENT
PUBLIC GOODS
Language:eng
Abstract:The implications of more environmental concern for the optimal provision of public goods, tax structure, and involuntary unemployment are derived within a second-best framework in which lump-sum taxes are not available and labour supply is rationed owing to a rigid consumer wage. A shift towards greener preferences may boost employment and public consumption if initial environmental concern is small, a fixed factor plays a major role in production, and pollution is reduced through more labor-intensive production rather than a lower level of output.
SCIMA record nr: 155456
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