IDEAS home Printed from https://ideas.repec.org/p/hal/journl/halshs-00089913.html
   My bibliography  Save this paper

Double Dividend with Involuntary Unemployment: Efficiency and Intergenerational Equity

Author

Listed:
  • Mireille Chiroleu-Assouline

    (EUREQUA - Equipe Universitaire de Recherche en Economie Quantitative - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)

  • Mouez Fodha

    (EUREQUA - Equipe Universitaire de Recherche en Economie Quantitative - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)

Abstract

This paper analyzes the double dividend and distributional issues within an overlapping generations models framework with involuntary unemployment. We characterize the necessary conditions for the obtention of a double dividend when the revenue of the environmental tax is recycled by a variation of the labor tax rate. We show that an employment dividend may occur without any efficiency dividend and that the young generation is not always harmed by the fiscal reform, even without any intergenerational transfers. Therefore, three dividends (environmental, efficiency and intergenerational equity) can simultaneously occur.

Suggested Citation

  • Mireille Chiroleu-Assouline & Mouez Fodha, 2005. "Double Dividend with Involuntary Unemployment: Efficiency and Intergenerational Equity," Post-Print halshs-00089913, HAL.
    • Handle: RePEc:hal:journl:halshs-00089913
    DOI: 10.1007/s10640-005-2040-7
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00089913
    as

    Download full text from publisher

    File URL: https://shs.hal.science/halshs-00089913/document
    Download Restriction: no
    File URL: https://libkey.io/10.1007/s10640-005-2040-7?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Lans Bovenberg, A. & de Mooij, Ruud A., 1994. "Environmental taxes and labor-market distortions," European Journal of Political Economy, Elsevier, vol. 10(4), pages 655-683, December.
    2. John, A & Pecchenino, R, 1994. "An Overlapping Generations Model of Growth and the Environment," Economic Journal, Royal Economic Society, vol. 104(427), pages 1393-1410, November.
    3. A. Andrew John & Rowena A. Pecchenino, 1997. "International and Intergenerational Environmental Externalities," Scandinavian Journal of Economics, Wiley Blackwell, vol. 99(3), pages 371-387, September.
    4. John, A. & Pecchenino, R. & Schimmelpfennig, D. & Schreft, S., 1995. "Short-lived agents and the long-lived environment," Journal of Public Economics, Elsevier, vol. 58(1), pages 127-141, September.
    5. Chiroleu-Assouline, Mireille & Fodha, Mouez, 2006. "Double dividend hypothesis, golden rule and welfare distribution," Journal of Environmental Economics and Management, Elsevier, vol. 51(3), pages 323-335, May.
    6. Eric O'N. Fisher & Charles van Marrewijk, 1998. "Pollution and economic growth," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 7(1), pages 55-69.
    7. Bovenberg, A. Lans & van der Ploeg, Frederick, 1996. "Optimal taxation, public goods and environmental policy with involuntary unemployment," Journal of Public Economics, Elsevier, vol. 62(1-2), pages 59-83, October.
    8. S. Proost & D. van Regemorter, 2002. "The Double Dividend and the Role of Inequality Aversion and Macroeconomic Regimes," Chapters, in: Lawrence H. Goulder (ed.), Environmental Policy Making in Economies with Prior Tax Distortions, chapter 30, pages 596-608, Edward Elgar Publishing.
    9. A. Lans Bovenberg & Frederick van der Ploeg, 2002. "Tax Reform, Structural Unemployment and the Environment," Chapters, in: Lawrence H. Goulder (ed.), Environmental Policy Making in Economies with Prior Tax Distortions, chapter 21, pages 379-396, Edward Elgar Publishing.
    10. Bosello, Francesco & Carraro, Carlo & Galeotti, Marzio, 2001. "The double dividend issue: modeling strategies and empirical findings," Environment and Development Economics, Cambridge University Press, vol. 6(1), pages 9-45, February.
    11. Pierre Granier & Philippe Michel, 1994. "Les conflits d'intérêt entre travailleurs qualifiés et travailleurs non qualifiés," Économie et Prévision, Programme National Persée, vol. 115(4), pages 125-139.
    12. Bovenberg, A. Lans & Heijdra, Ben J., 1998. "Environmental tax policy and intergenerational distribution," Journal of Public Economics, Elsevier, vol. 67(1), pages 1-24, January.
    13. R. M. Solow, 1974. "Intergenerational Equity and Exhaustible Resources," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 41(5), pages 29-45.
    14. repec:bla:scandj:v:88:y:1986:i:1:p:141-49 is not listed on IDEAS
    15. Lawrence Goulder, 1995. "Environmental taxation and the double dividend: A reader's guide," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 2(2), pages 157-183, August.
    16. repec:bla:scandj:v:99:y:1997:i:3:p:371-87 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Chiroleu-Assouline, Mireille & Fodha, Mouez, 2014. "From regressive pollution taxes to progressive environmental tax reforms," European Economic Review, Elsevier, vol. 69(C), pages 126-142.
    2. Mireille Chiroleu-Assouline & Mouez Fodha, 2023. "Debt, tax and environmental policy [Dette, taxe et politique environnementale]," Post-Print halshs-04181981, HAL.
    3. Zylicz, Tomasz, 2010. "Goals and Principles of Environmental Policy," International Review of Environmental and Resource Economics, now publishers, vol. 3(4), pages 299-334, May.
    4. Yakut, Aykut Mert & de Bruin, Kelly, 2023. "The importance of having a more realistic welfare transfer determination rule: A CGE analysis for Ireland," Economic Analysis and Policy, Elsevier, vol. 80(C), pages 1310-1325.
    5. : Eduardo L. Giménez (a) & Miguel Rodríguez, "undated". "Pigou’S Dividend Versus Ramsey’S Dividend In The Double Dividend Literature," Working Papers 2-06 Classification-JEL :, Instituto de Estudios Fiscales.
    6. Mouez Fodha & Thomas Seegmuller & Hiroaki Yamagami, 2018. "Environmental Tax Reform under Debt Constraint," Annals of Economics and Statistics, GENES, issue 129, pages 33-52.
    7. Chung-Huang Huang & Wan-Ling Chou, 2012. "Dividends of Environmental Tax with Endogenized Time and Medical Expenditures," EcoMod2012 4307, EcoMod.
    8. Mireille Chiroleu-Assouline & Mouez Fodha, 2009. "Double Dividend and Distribution of Welfare: Advanced Results and Empirical Considerations," Economie Internationale, CEPII research center, issue 120, pages 91-108.
    9. Mouez Fodha & Thomas Seegmuller & Hiroaki Yamagami, 2014. "Environmental Policies under Debt Constraint," Working Papers halshs-01023798, HAL.
    10. Karine Constant & Marion Davin, 2019. "Unequal Vulnerability to Climate Change and the Transmission of Adverse Effects Through International Trade," Post-Print hal-04215353, HAL.
    11. Mireille Chiroleu-Assouline & Mouez Fodha, 2011. "Environmental Tax and the Distribution of Income among Heterogeneous Workers," Annals of Economics and Statistics, GENES, issue 103-104, pages 71-92.
    12. Chiroleu-Assouline, Mireille & Fodha, Mouez, 2006. "Double dividend hypothesis, golden rule and welfare distribution," Journal of Environmental Economics and Management, Elsevier, vol. 51(3), pages 323-335, May.
    13. Mathieu-Bolh, Nathalie, 2017. "Can tax reforms help achieve sustainable development?," Resource and Energy Economics, Elsevier, vol. 50(C), pages 135-163.
    14. Karine Constant & Marion Davin, 2019. "Unequal Vulnerability to Climate Change and the Transmission of Adverse Effects Through International Trade," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 74(2), pages 727-759, October.
    15. Mireille Chiroleu-Assouline & Mouez Fodha, 2011. "Verdissement de la fiscalité. À qui profite le double dividende ?," Revue de l'OFCE, Presses de Sciences-Po, vol. 0(1), pages 409-431.
    16. Andualem Telaye Mengistu & Pablo Benitez & Seneshaw Tamru & Haileselassie Medhin & Michael Toman, 2019. "Exploring Carbon Pricing in Developing Countries: A Macroeconomic Analysis in Ethiopia," Sustainability, MDPI, vol. 11(16), pages 1-21, August.
    17. Mireille Chiroleu-Assouline, 2022. "Rendre acceptable la nécessaire taxation du carbone. Quelles pistes pour la France ?," Revue de l'OFCE, Presses de Sciences-Po, vol. 0(1), pages 15-53.
    18. Chung-Fu Lai, 2016. "Examining the Double Dividend Effect of Energy Tax with the Overlapping Generations Model," International Journal of Energy Economics and Policy, Econjournals, vol. 6(1), pages 53-57.
    19. Saveyn, Bert & Van Regemorter, Denise & Ciscar, Juan Carlos, 2011. "Economic analysis of the climate pledges of the Copenhagen Accord for the EU and other major countries," Energy Economics, Elsevier, vol. 33(S1), pages 34-40.
    20. Giménez, Eduardo L. & Rodríguez, Miguel, 2010. "Reevaluating the first and the second dividends of environmental tax reforms," Energy Policy, Elsevier, vol. 38(11), pages 6654-6661, November.
    21. Tetsuo Ono, 2007. "Environmental Tax Reform, Economic Growth, and Unemployment in an OLG Economy," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 63(1), pages 133-161, March.
    22. Bert Saveyn & Stef Proost, 2008. "Energy-Tax Reform with Vertical Tax Externalities," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 64(1), pages 63-86, March.
    23. Tetsuo Ono, 2008. "Environmental tax reform in an overlapping-generations economy with involuntary unemployment," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 9(4), pages 213-238, December.
    24. Andualem Telaye & Pablo Benitez & Seneshaw Tamru & Haileselassie Medhin & Michael Toman, 2019. "Exploring Carbon Pricing in Developing Countries," World Bank Publications - Reports 31717, The World Bank Group.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mireille Chiroleu-Assouline & Mouez Fodha, 2009. "Double Dividend and Distribution of Welfare: Advanced Results and Empirical Considerations," Economie Internationale, CEPII research center, issue 120, pages 91-108.
    2. Mouez Fodha & Thomas Seegmuller & Hiroaki Yamagami, 2018. "Environmental Tax Reform under Debt Constraint," Annals of Economics and Statistics, GENES, issue 129, pages 33-52.
    3. Chiroleu-Assouline, Mireille & Fodha, Mouez, 2006. "Double dividend hypothesis, golden rule and welfare distribution," Journal of Environmental Economics and Management, Elsevier, vol. 51(3), pages 323-335, May.
    4. Mouez Fodha & Thomas Seegmuller & Hiroaki Yamagami, 2014. "Environmental Policies under Debt Constraint," Working Papers halshs-01023798, HAL.
    5. Mireille Chiroleu-Assouline & Mouez Fodha, 2011. "Verdissement de la fiscalité. À qui profite le double dividende ?," Revue de l'OFCE, Presses de Sciences-Po, vol. 0(1), pages 409-431.
    6. Mireille Chiroleu-Assouline & Mouez Fodha, 2023. "Debt, tax and environmental policy [Dette, taxe et politique environnementale]," Post-Print halshs-04181981, HAL.
    7. Heijdra, Ben J. & Kooiman, Jan Peter & Ligthart, Jenny E., 2006. "Environmental quality, the macroeconomy, and intergenerational distribution," Resource and Energy Economics, Elsevier, vol. 28(1), pages 74-104, January.
    8. Tetsuo Ono, 2007. "Environmental Tax Reform, Economic Growth, and Unemployment in an OLG Economy," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 63(1), pages 133-161, March.
    9. Chung-Fu Lai, 2016. "Examining the Double Dividend Effect of Energy Tax with the Overlapping Generations Model," International Journal of Energy Economics and Policy, Econjournals, vol. 6(1), pages 53-57.
    10. Shintaro Nakagawa & Masayuki Sato & Rintaro Yamaguchi, 2014. "Environment, growth, and technological change in a two-country overlapping-generations model," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 16(4), pages 397-443, October.
    11. Aubert, Diane & Chiroleu-Assouline, Mireille, 2019. "Environmental tax reform and income distribution with imperfect heterogeneous labour markets," European Economic Review, Elsevier, vol. 116(C), pages 60-82.
    12. Laurence Kotlikoff & Felix Kubler & Andrey Polbin & Jeffrey Sachs & Simon Scheidegger, 2021. "Making Carbon Taxation A Generational Win Win," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 62(1), pages 3-46, February.
    13. John C. V. Pezzey, 2004. "Sustainability Policy and Environmental Policy," Scandinavian Journal of Economics, Wiley Blackwell, vol. 106(2), pages 339-359, June.
    14. Bovenberg, A. Lans & Goulder, Lawrence H., 2002. "Environmental taxation and regulation," Handbook of Public Economics, in: A. J. Auerbach & M. Feldstein (ed.), Handbook of Public Economics, edition 1, volume 3, chapter 23, pages 1471-1545, Elsevier.
    15. Frédéric Gonand, 2019. "Inégalité intergénérationnelle et recyclage d’une taxe carbone," Revue économique, Presses de Sciences-Po, vol. 70(3), pages 411-440.
    16. Pereira, Alfredo & Pereira, Rui, 2016. "On the Optimal Use of Revenues from a CO2 Tax and the Importance of Labor Market Conditions," MPRA Paper 77630, University Library of Munich, Germany.
    17. Gonand, Frédéric & Jouvet, Pierre-André, 2015. "The “second dividend” and the demographic structure," Journal of Environmental Economics and Management, Elsevier, vol. 72(C), pages 71-97.
    18. Mouez Fodha & Thomas Seegmuller, 2010. "Environmental Policy and Public Debt Stabilization," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00512789, HAL.
    19. Stamatina Hadjidema & Konstantinos Eleftheriou, 2013. "A Search Theoretic Approach on Environmental Taxation under Productive Differentials: A Note," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 19(2), pages 153-166, May.
    20. Nakabayashi, Masanari, 2010. "Optimal tax rules and public sector efficiency with an externality in an overlapping generations model," Journal of Public Economics, Elsevier, vol. 94(11-12), pages 1028-1040, December.

    More about this item

    Keywords

    Environmental tax; Intergenerational equity; Unemployment; Double dividend;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hal:journl:halshs-00089913. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.