Ricardian rents, environmental policy and the ‘double-dividend’ hypothesis

Bento, Antonio M.; Jacobsen, Mark R.

doi:10.1016/j.jeem.2006.03.006

Cited by 92 publications

(66 citation statements)

References 13 publications

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“…Yet from the analysis in the thesis, recycling of these tax revenues decreases the scale of first dividend of reduced externality production by somewhere between 11 and 32%. The findings of the case studies support those of Bento and Jacobsen (2007) who demonstrate a trade-off between the first and second dividends from environmental taxation. This result also further highlights the uncertainty of environmental outcomes from environmental taxes that was raised by Brannlund and Nordstrom (2004).…”

Section: Expanding the Scope Of Rebound Effects To Include The Governsupporting

confidence: 77%

“…Many authors have postulated that recycling environmental tax revenues to reduce distortionary taxes, such as income taxes, enables the realisation of a 'double dividend' due to improved efficiency from environmental taxes (Bovenberg and de Mooij, 1994;Ekins, 2000;Manresa and Sancho, 2005;Bento and Jacobsen, 2007;Lawn, 2007). However, an intrinsic trade-off between the benefits of the first dividend, that of pollution reduction, and the second dividend are being raised (Ekins, 2000;Bento and Jacobsen, 2007).…”

Section: Rebound Effectanalysis Of Taxes and Transfersmentioning

confidence: 99%

“…However, an intrinsic trade-off between the benefits of the first dividend, that of pollution reduction, and the second dividend are being raised (Ekins, 2000;Bento and Jacobsen, 2007). Analysing the indirect rebound effect from a carbon tax can demonstrate why this trade-off occurs.…”

Section: Rebound Effectanalysis Of Taxes and Transfersmentioning

confidence: 99%

“…Many authors support the stance that there is a double dividend from environmental taxation (Ekins, 2000;Manresa and Sancho, 2005;Bento and Jacobsen, 2007). The first dividend is a 56 Refer to Chapter 3 and Sorrell (2007) for an overview of the literature on direct rebound effects.…”

Section: Expanding the Scope Of Rebound Effects To Include The Governmentioning

confidence: 99%

“…Further elaboration of the win-win philosophy of ecological modernists comes from the many authors who postulate that recycling environmental tax revenues to reduce distortionary taxes, such as income taxes, enables the realisation of a 'double dividend' due to improved efficiency from environmental taxes (Bovenberg and de Mooij, 1994;Ekins, 2000;Manresa and Sancho, 2005;Bento and Jacobsen, 2007;Lawn, 2007). If this is the case, it is simply a matter of providing the right incentives to decouple the economy from environmental degradation.…”

mentioning

confidence: 99%

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The Remarkable Environmental Rebound Effect of Electric Cars: A Microeconomic Approach

Vivanco

Freire‐González

Kemp

et al. 2014

Environ. Sci. Technol.

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The main objective of the thesis is to seek insights into the theory, and provide empirical evidence of rebound effects. Rebound effects reduce the environmental benefits of environmental policies and household behaviour changes. In particular, win-win demand side measures, in the form of energy efficiency and household consumption pattern changes, are seen as ways for households and businesses to save money and the environment. However, these savings have environmental impacts when spent, which are known as rebound effects. This is an area that has been widely neglected by policy makers.This work extends the rebound effect literature in three important ways, (1) it incorporates the potential for variation of rebound effects with household income level, (2) it enables the isolation of direct and indirect effects for cases of energy efficient technology adoption, and examines the relationship between these two component effects, and (3) it expands the scope of rebound effect analysis to include government taxes and subsidies. MACROBUTTON HTMLDirectUsing a case study approach it is found that the rebound effect from household consumption pattern changes targeted at electricity is between 5 and 10%. For consumption pattern changes with reduced vehicle fuel use, the rebound effect is in the order of 20 to 30%. Higher income households in general are found to have a lower total rebound effect; however the indirect effect becomes relatively more significant at higher household income levels. In the win-lose case of domestic photovoltaic electricity generation, it is demonstrated that negative rebound effects can occur, which can potentially amplify the environmental benefits of this action.The rebound effect from a carbon tax, which occurs due to the re-spending of raised revenues, was found to be in the range of 11-32%. Taxes and transfers between households of different income levels also have environmental implications. For example, a more progressive tax structure, with increased low income welfare payments is likely to increase greenhouse gas emissions. Subsidies aimed at encouraging environmentally friendly consumption habits are also subject to rebound effects, as they constitute a substitution of government expenditure for household expenditure. For policy makers, these findings point to the need to incorporate rebound effects in the environmental policy evaluation process.' KeywordsRebound effect, demand side management, direct rebound effect, indirect rebound effect, greenhouse gas emissions, CO 2 , household consumption patterns, efficiency, energy, conservation, natural resources. The energy and emissions produced at other stages of the production chain outside of the household scope. vi List of Tables and +/-is efficiency net effect minus the conservation net effect with negative values in parentheses). 66 Table 5.5: Rebound effects at mean and median total expenditure levels for separated fuel efficiency case (indirect reduction is the efficiency indirect rebound minus the conservation indir...

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Section: Expanding the Scope Of Rebound Effects To Include The Governsupporting

confidence: 77%

Section: Rebound Effectanalysis Of Taxes and Transfersmentioning

confidence: 99%

Section: Rebound Effectanalysis Of Taxes and Transfersmentioning

confidence: 99%

Section: Expanding the Scope Of Rebound Effects To Include The Governmentioning

confidence: 99%

mentioning

confidence: 99%

See 3 more Smart Citations

The Remarkable Environmental Rebound Effect of Electric Cars: A Microeconomic Approach

Vivanco

Freire‐González

Kemp

et al. 2014

Environ. Sci. Technol.

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Will tougher environmental policy reduce the employment of industrial enterprises? The heterogeneity analysis based on enterprise level and city level

Gao

Yang

2021

Manage Decis Econ

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Using the Two Control Zones policy in China, we analyze the impact of tougher environmental policy on the employment of industrial enterprises through DID and PSM‐DID methods. We find that tougher environmental policy has a positive (negative) employment effect for industrial enterprises above (below) designated size. In the heterogeneity tests, the positive effect is more significant for enterprises with bigger size, stronger R&D capability, less financial constraint, owned by foreign shareholders, and located in eastern provinces. As for the enterprises in heavily polluting industries, tougher environmental regulation may hinder their development.

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Climate policy and the ‘carbon haven’ effect

Branger

Quirion

2013

WIREs Climate Change

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International audienceIn a world with uneven climate policies, the carbon price differentials across regions could shift the production of energy-intensive goods from carbon-constrained countries to " carbon havens " , or countries with laxer climate policy. This would reduce the environmental benefits of the policy (carbon leakage) while potentially damaging the economy (competitiveness concerns). A review on these questions is provided in this article. First we discuss the main terms involved such as carbon leakage, competitiveness, sectors at risk or climate spillovers. Then we analyse the studies evaluating the carbon leakage risk. Most ex ante modelling studies conclude to leakage rates in the range of 5-20% (if no option to mitigate leakage is implemented) whereas ex post econometric studies haven't revealed statistically significant evidence of leakage. Different policy options to face these issues are then examined with an emphasis on Border Carbon Adjustments (BCA). BCA consist in reducing the carbon price differentials of goods traded between countries. Properly implemented, they can reduce leakage (by around 10 percentage points in ex ante modelling studies) in a cost-effective way but are controversial because they shift a part of the abatement costs from abating countries to non-abating countries. Their impact on international negotiations is unclear: they could encourage third countries to join the abating coalition or trigger a trade war. Besides, their consistency with WTO rules is highly contentious among legal experts

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Ricardian rents, environmental policy and the ‘double-dividend’ hypothesis

Cited by 92 publications

References 13 publications

The Remarkable Environmental Rebound Effect of Electric Cars: A Microeconomic Approach

The Remarkable Environmental Rebound Effect of Electric Cars: A Microeconomic Approach

Will tougher environmental policy reduce the employment of industrial enterprises? The heterogeneity analysis based on enterprise level and city level

Climate policy and the ‘carbon haven’ effect

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