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Holmlund, Bertil; Kolm, Ann-Sofie

doi:10.1023/a:1008757830467

Cited by 23 publications

(3 citation statements)

References 15 publications

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“…The double dividend, in this case, results from a transfer of the tax burden from workers to the unemployed. Marsiliani and Renstron (2000) and Holmlund and Kolm (2000) show that the more important the economic dividend, the less competitive the market. Similarly, Boitier et al (2015, p. 4) argue that "labor market flexibility thus appears crucial for the intra-population sharing of the effects of an energy price increase and for the efficiency of recycling the amounts of a potential energy tax."…”

Section: The Creation Of Shareholder Value (Economic Value Added [Eva]mentioning

confidence: 99%

Why should the carbon tax be floating? A Tobin’s Q model applied to green investment

Piluso

2023

Environmental Economics

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The carbon market reform is controversial because the modalities of carbon pricing foreseen risk reducing the performance of companies and negatively affecting the economy. The objective of this paper is to show that the carbon tax can be floating and adapt to the economic situation while maintaining its ecological efficiency. Herein, Tobin’s Q model, which has become a standard in the literature for explaining the investment decision, is applied to the green investment decision. A carbon tax is introduced into the firm’s maximization program to see how carbon pricing changes the outcome of the traditional model. The model shows that green investment depends on the sum of the stock price and the carbon price, which suggests the possibility of modulating this amount according to the upward or downward trend of the stock price to avoid permanently penalizing the competitiveness of firms. The study also demonstrates how the financial market is likely to value green investments and that such investments will likely generate shareholder value through several channels. Indeed, green investments impact the firm’s turnover and the minimum income required by the shareholder. Such a modulation of the carbon tax according to the economic cycle would make reconciling ecological and economic efficiency possible.

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Section: The Creation Of Shareholder Value (Economic Value Added [Eva]mentioning

confidence: 99%

Why should the carbon tax be floating? A Tobin’s Q model applied to green investment

Piluso

2023

Environmental Economics

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“…Bayar (1998) argues that environmental tax reform will have a positive effect on employment, but this effect will diminish over time due to wage suppression. Holmlund & Kolm (2000) analyzed environmental tax reform in a small economy with unemployment in general equilibrium. Using the general equilibrium model, this study estimated that reforming the environmental tax would lead to a limited increase in employment.…”

Section: Literature Reviewmentioning

confidence: 99%

Environmental Tax Reform and the European Green Deal: Empirical Evidence from Panel Data Analysis

DOGAN

2023

International Journal of Public Finance

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The European Green Deal, the European Union's roadmap for a green transition, was launched in 2019. With this strategy, the European Union aims to stop carbon emissions by 2050 through green policies in many sectors, especially in the energy sector. The European Union also uses various environmental tax instruments to achieve this goal. Environmental taxes, one of these instruments, are considered to have a regressive effect on employment and welfare, especially in carbon-intensive industries. In order to mitigate these negative social and economic impacts of the green transition, the European Union has implemented the Just Transition Mechanism. However, it is not known whether the Just Transition Mechanism will be sufficient after the newly introduced regulations such as the plastic tax, the Energy Tax Directive, and the Carbon Border Adjustment. This study conducted a panel data analysis covering the period between 1994-2020 to analyze the impact of environmental taxes on employment. In this panel of 29 European countries, the dependent variable is the unemployment rate while independent variables are environmental taxes, gross domestic product, renewable energy supply and energy efficiency. As a result of this analysis, it is concluded that environmental taxes have an increasing effect on unemployment. Therefore, based on the panel data analysis, it is concluded that the Environmental Tax Reform package, which will provide double dividend in terms of both environmental and employment, should be implemented in addition to the Just Transition Mechanism.

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“…Bovenberg and van der Ploeg (1998) construct a model in which the wage is exogenously rigid and support the hypothesis. Holmlund and Kolm (2000) develop a search and matching model without a job creation condition in which an economy consists of tradable and nontradable sectors. They show that an increase in emissions taxes leads to a decrease in employment in the former sector, but an increase in employment in the latter sector.…”

Section: Introductionmentioning

confidence: 99%

Trade Liberalization, an Employment Double-Dividend Hypothesis, and Welfare with Heterogeneous Firms

Nishiyama

Takada

Tsuboi

2021

The International Economy

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Can trade liberalization deliver an employment double dividend and a welfare gain? To answer this question, we develop a trade model with firm heterogeneity, search and matching frictions, and an emissions tax. Decomposing the impact of trade liberalization on the amount of emissions into four forces, we first analytically show that trade liberalization may or may not support an employment doubledividend hypothesis, and that it may deliver a welfare loss. We then simulate our model and find that though it is rejected, a deliberate investment in abatement technology enables an economy to transit to a clean equilibrium with lower unemployment.

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Untitled

Cited by 23 publications

References 15 publications

Why should the carbon tax be floating? A Tobin’s Q model applied to green investment

Why should the carbon tax be floating? A Tobin’s Q model applied to green investment

Environmental Tax Reform and the European Green Deal: Empirical Evidence from Panel Data Analysis

Trade Liberalization, an Employment Double-Dividend Hypothesis, and Welfare with Heterogeneous Firms

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