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Verdissement de la fiscalité : à qui profite le double dividende ?

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  • Mireille Chiroleu-Assouline

    (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)

  • Mouez Fodha

    (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)

Abstract

The double dividend literature studies the simultaneous pursuit of two objectives - improving the quality of the environment through the introduction or enhancement of an environmental tax (first dividend) and increased social welfare by reducing distortions induced by the whole the tax system (second dividend). By investigating the conditions that would reconcile the double dividend with some social equity criteria, this work goes beyond the usual results of the literature in which the second dividend is to be achieved at the expense of a group of agents who should bear the main part of the tax burden. The reform should achieve three goals: environmental quality, economic efficiency (ie the macroeconomic gains) and the Pareto improvement. These objectives therefore require three instruments: the environmental tax, the income tax and the index of tax progressivity. We show that the redistributive properties of the income tax could be a tool for correcting social distortions induced by the environmental policy. We propose to recycle the revenues of the carbon tax by a nonlinear decrease of the income tax among households, combining a decrease in the tax rate of the first bracket of income tax (which benefits all agents) with a higher rate for the upper brackets (which cost will be mainly supported by highest classes of income). This latter mechanism could compensate the regressive characteristics of the carbon tax.

Suggested Citation

  • Mireille Chiroleu-Assouline & Mouez Fodha, 2011. "Verdissement de la fiscalité : à qui profite le double dividende ?," Post-Print halshs-00601768, HAL.
  • Handle: RePEc:hal:journl:halshs-00601768
    DOI: 10.3917/reof.116.0409
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00601768
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    Cited by:

    1. Éloi Laurent & Jacques Le Cacheux, 2012. "Carbone sans frontières. Quelles solutions fiscales face aux émissions importées ?," Revue de l'OFCE, Presses de Sciences-Po, vol. 0(3), pages 83-98.
    2. repec:spo:wpmain:info:hdl:2441/eu4vqp9ompqllr09hi4ipb1c8 is not listed on IDEAS
    3. Mireille Chiroleu-Assouline, 2015. "Can environmental taxation in France really become ecological? Current situation and conditions of acceptability," PSE Working Papers halshs-04198162, HAL.
    4. repec:hal:spmain:info:hdl:2441/eu4vqp9ompqllr09hi4ipb1c8 is not listed on IDEAS
    5. Nicolas Piluso, 2023. "Why should the carbon tax be floating ?," Post-Print hal-04125654, HAL.
    6. Mireille Chiroleu-Assouline, 2015. "La fiscalité environnementale en France peut-elle devenir réellement écologique ?. État des lieux et conditions d’acceptabilité," Revue de l'OFCE, Presses de Sciences-Po, vol. 0(3), pages 129-165.

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    More about this item

    Keywords

    Environmental tax; Double dividend; Heterogenous agents; Welfare analysis; Tax progressivity; Fiscalité; Ecotaxe; Double dividende; Agents hétérogènes; Bien-être; Progressivité de l'impôt;
    All these keywords.

    JEL classification:

    • D60 - Microeconomics - - Welfare Economics - - - General
    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies

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