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Ecological Tax Reform and Involuntary Unemployment: Simulation Results for Switzerland

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  • Gebhard Kirchgässner
  • Ulrich Müller
  • Marcel Savioz

Abstract

Using an applied general equilibrium of the Swiss economy the economic consequences of an environmental tax reform are analysed. Such a reform is followed by a substantial reduction of C02 emissions and the use of non-renewable energy (first dividend), and a reduction of involuntary unemployment. The existence of this second dividend depends, however, on the strategy followed by trade unions. These results are compared with the results of models with voluntary employment, with an energy tax rather than a C02 tax, and a model where the three most energy intensive sectors are exempted from paying the C02 tax.

Suggested Citation

  • Gebhard Kirchgässner & Ulrich Müller & Marcel Savioz, 1998. "Ecological Tax Reform and Involuntary Unemployment: Simulation Results for Switzerland," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 134(III), pages 329-353, September.
    • Handle: RePEc:ses:arsjes:1998-iii-6
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    References listed on IDEAS

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    2. Bartosz Jóźwik & Antonina Gavryshkiv, 2022. "Wpływ podatku środowiskowego na emisję gazów cieplarnianych w państwach Grupy Wyszehradzkiej," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 1, pages 66-78.
    3. Kirchgassner, Gebhard & Schneider, Friedrich, 2003. "On the Political Economy of Environmental Policy," Public Choice, Springer, vol. 115(3-4), pages 369-396, June.

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