Environmental Tax Reform and Income Distribution with Imperfect Heterogeneous Labour Markets

European Economic Review, pp. 60-82, 2019.

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Abstract:

This paper investigates the distributional and efficiency consequences of an environmental tax reform that distributes the revenue from a green tax according to varying labour tax rates. We build a general equilibrium model with heterogeneous workers, imperfect labour markets (search and match), and pollution consumption externalities. Pr...More

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