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Green taxes:economic theory and empirical evidence from Scandinavia

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The prospect of simultaneously achieving a 'greener' environment, increased tax revenues and lower levels of unemployment has made ecological taxes an increasingly popular proposition. This volume examines the possibility of ecological tax reform in the Nordic countries of Denmark, Norway and Sweden. The potential for ecological tax reform is investigated on a theoretical and an empirical level. The social costs associated with environmental taxes are analyzed and the impacts of a Swedish carbon tax are calculated by means of a static numerical model. Taxes on carbon, nitrogen and fertilizers are also examined. The authors find that the level of unemployment cannot be decreased by revenue neutral environmental taxes without any social costs and conclude that there are no easy ways to achieve full employment, a budget surplus and environmental sustainability. They conclude that further understanding of the functioning of the labor market, household decisions and the link between change in pollutant emissions and environmental damage is needed in order to make more concrete suggestions concerning ecological tax reforms. Green Taxes will be of immense use to academics and practitioners in the field of environmental economics.
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