Carbon Tax and Economic Stability: A Broader Approach to the Double Dividend of Ecological Taxation
DOI:
https://doi.org/10.33423/jabe.v27i2.7556Keywords:
business, economics, double-dividend, carbon tax, growth, instability, perfect competitionAbstract
This article develops a Keynesian model of economic growth with involuntary unemployment in a situation of perfect competition in which we introduce an environmental tax. We show that it is possible to demonstrate a triple dividend from ecological taxation. This triple dividend is characterized by an ecological effect of reducing greenhouse gas emissions, and two possible economic effects: a possible positive effect on employment, and an effect of reducing the instability of the economy. We therefore broaden the double dividend issue by highlighting an implication of ecological taxation that has been little studied in the literature. We show that highlighting a double or triple dividend from ecological taxation does not require introducing elements of imperfect competition.
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