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Double Dividend Environmental Taxation and Canadian Carbon Emissions Control

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  • Ross McKitrick

Abstract

The possibility of using revenues from environmental taxes to reduce other distortions in the tax system (the so-called double dividend approach) has been discussed recently. This paper reviews the current debate and presents empirical evidence to suggest that the double dividend approach can significantly reduce the cost of CO2 emissions control in Canada and possibly eliminate aggregate welfare and output reductions due to implementation of a carbon tax.

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  • Ross McKitrick, 1997. "Double Dividend Environmental Taxation and Canadian Carbon Emissions Control," Canadian Public Policy, University of Toronto Press, vol. 23(4), pages 417-438, December.
    • Handle: RePEc:cpp:issued:v:23:y:1997:i:4:p:417-438
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    1. Ross McKitrick, 1997. "Double Dividend Environmental Taxation and Canadian Carbon Emissions Control," Canadian Public Policy, University of Toronto Press, vol. 23(4), pages 417-438, December.
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    Cited by:

    1. Brian R. Copeland & M. Scott Taylor, 2017. "Environmental and resource economics: A Canadian retrospective," Canadian Journal of Economics, Canadian Economics Association, vol. 50(5), pages 1381-1413, December.
    2. Bor, Yunchang Jeffrey & Huang, Yophy, 2010. "Energy taxation and the double dividend effect in Taiwan's energy conservation policy--an empirical study using a computable general equilibrium model," Energy Policy, Elsevier, vol. 38(5), pages 2086-2100, May.
    3. Alberto Gago & Xavier Labandeira & Xiral López Otero, 2014. "A Panorama on Energy Taxes and Green Tax Reforms," Hacienda Pública Española / Review of Public Economics, IEF, vol. 208(1), pages 145-190, March.
    4. Macdonald, Kevin & Patrinos, Harry Anthony, 2021. "Education Quality, Green Technology, and the Economic Impact of Carbon Pricing," GLO Discussion Paper Series 955, Global Labor Organization (GLO).
    5. Feng, Chun-Chiang & Chang, Kuei-Feng & Lin, Jin-Xu & Lee, Tsung-Chen & Lin, Shih-Mo, 2022. "Toward green transition in the post Paris Agreement era: The case of Taiwan," Energy Policy, Elsevier, vol. 165(C).
    6. Creedy, John & Sleeman, Catherine, 2006. "Carbon taxation, prices and welfare in New Zealand," Ecological Economics, Elsevier, vol. 57(3), pages 333-345, May.
    7. William Wills & Emilio Lebre La Rovere & Carolina Grottera & Giovanna Ferrazzo Naspolini & Gaëlle Le Treut & F. Ghersi & Julien Lefèvre & Carolina Burle Schmidt Dubeux, 2022. "Economic and social effectiveness of carbon pricing schemes to meet Brazilian NDC targets," Post-Print hal-03500923, HAL.
    8. Jaume Freire-González & Mun S. Ho, 2018. "Environmental Fiscal Reform and the Double Dividend: Evidence from a Dynamic General Equilibrium Model," Sustainability, MDPI, vol. 10(2), pages 1-18, February.
    9. Hussaini Bala & Abdulaziz S. Al Naim & Armaya’u Alhaji Sani & Abdulrahman Alomair, 2024. "Assessing the Role of Board Structure on the Nexus between Green Innovations, Green Taxation, and Cosmetic Accounting Practice in Nigeria," Sustainability, MDPI, vol. 16(16), pages 1-17, August.
    10. Ross McKitrick, 1997. "Double Dividend Environmental Taxation and Canadian Carbon Emissions Control," Canadian Public Policy, University of Toronto Press, vol. 23(4), pages 417-438, December.
    11. Freire-González, Jaume, 2018. "Environmental taxation and the double dividend hypothesis in CGE modelling literature: A critical review," Journal of Policy Modeling, Elsevier, vol. 40(1), pages 194-223.
    12. Érick Lachapelle & Jacques Papy & Pierre-Olivier Pineau & Hélène Trudeau, 2017. "Enquête sur les entreprises touchées par le système de plafonnement et d'échange de droits d'émission de gaz à effet de serre au Québec (SPEDE)," CIRANO Burgundy Reports 2017rb-01, CIRANO.
    13. Brian R. Copeland & M. Scott Taylor, 2017. "Environmental and resource economics: A Canadian retrospective," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 50(5), pages 1381-1413, December.
    14. Chun-Chiang Feng & Kuei-Feng Chang & Jin-Xu Lin & Shih-Mo Lin, 2020. "The Distributional Effect of A Carbon Tax on Income in Taiwan," Sustainability, MDPI, vol. 12(4), pages 1-17, February.
    15. Shao, Shuai & Xu, Le & Yang, Lili & Yu, Dianfan, 2024. "How do energy-saving policies improve environmental quality: Evidence from China’s Top 10,000 energy-consuming enterprises program," World Development, Elsevier, vol. 175(C).

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    More about this item

    JEL classification:

    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy
    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy

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