Differentiation of Green Taxes: A Political-Economy Analysis for Germany
نویسندگان
چکیده
In this paper we study political-economy determinants of the differentiation of environmental taxes between sectors. Using a common-agency model, we provide predictions on tax differentiation which are then tested using data from the German Ecological Tax Reform. As the reform is revenue neutral and reduces labor costs, tax differentiation is not only determined by the activity of lobby groups favoring reduced tax rates, but also by the groups’ interest in revenue rebates to labor. Empirical data underpin our theoretical findings: A regression analysis of Germany’s green tax reform explains environmental tax differentiation by the presence of sectoral interest groups. Besides market concentration and energy demand elasticities, the exposure of industries to international trade flows plays an important role in the environmental tax design. JEL classification: D62, H23, P16
منابع مشابه
The Effect of Green Taxes on Labor Productivity in the Iranian Economy
his study attempts to examine the empirical relationship between gasoline taxes (as the most effective energy carrier of emissions) and labor productivities in the case of Iran using the time series data for the period 1990-2015 usingthe autoregressive distributed lag (ARDL) approach. This research tests the interrelationship between the variables using the bounds testing to cointegration proc...
متن کاملSimulation and prediction of the green tax effect on energy consumption and intensity in Iran using a genetic algorithm
Taxation as one of the safest ways of government financing has always been one of the financial tools of the government along with public sector expenses to achieve government objectives, and since the world's largest environmental damage is due to energy consumption, imposing environmental taxes on energy consumption can reduce the amount of environmental damage. Therefore, considering the ...
متن کاملOn the Political Economy of Green Tax Reforms
This paper offers a political economy model of green tax reforms in which the use of the revenue from the ecotax is an integrated part. We use the model to explain why and when a link between an ecotax and cuts in other non-environmental taxes can be expected. In our model, green tax swaps arise because a producer lobby group, even if the use of the revenue does not affect profits per se, takes...
متن کاملDynamic Mirrlees Taxation under Political Economy Constraints
We study the structure of non-linear taxes in a dynamic economy subject to political economy problems. In contrast to existing literature, taxes are set by a self-interested politician, without any commitment power, who is partly controlled by the citizens. We prove that: (1) a version of the revelation principle applies; and (2) the provision of incentives to politicians can be separated from ...
متن کاملGreen taxes and double dividends in a dynamic economy
This paper examines a revenue neutral green tax reform along the lines of the Double Dividend hypothesis. Using a dynamic general equilibrium model calibrated to the US economy, we find that increasing gasoline taxes and using the revenue to reduce capital income taxes does indeed deliver both types of welfare gains: from higher consumption of market goods ( an efficiency dividend), and from a ...
متن کامل