Title: Environmental Tax Reform and Producer Foresight
Abstract: This article analyzes the nonenvironmental welfare costs of an environmental tax reform using a numerical intertemporal general equilibrium model for the Norwegian economy. By exploiting existing tax wedges in the labor market and between consumption and saving, the total nonenvironmental welfare effect of the tax reform is positive. The article also analyzes how imperfect price expectations for the investors in real capital influence the total welfare costs of the tax reform. The welfare effect is the same due to exploitation of initial distortions, but the transitional dynamics are quite different in the two paths.
Publication Year: 2000
Publication Date: 2000-11-01
Language: en
Type: article
Indexed In: ['crossref']
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Cited By Count: 61
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