Chapter

The Effect of the German and UK Environmental Tax Reforms on the Demand for Labour and Energy

Paolo Agnolucci

in Environmental Tax Reform (ETR)

Published in print April 2011 | ISBN: 9780199584505
Published online May 2011 | e-ISBN: 9780191725012 | DOI: http://dx.doi.org/10.1093/acprof:oso/9780199584505.003.0007

Series: Creating Sustainable Growth In Europe

The Effect of the German and UK Environmental Tax Reforms on the Demand for Labour and Energy

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The objective of ETRs is to improve the environment (for example, by reducing carbon emissions) while reducing other taxes which may have a negative economic effect. Often ETRs also have the objective of increasing employment. The aim of this chapter is to estimate the effect on the demand for energy and the level of unemployment of the UK and German ETRs that have been implemented. In order to do this, we estimate a specification based on a translog cost function which allows us to model the cross-price elasticities among capital, labour, energy, material, and services.

Keywords: environmental tax reform; translog cost function; cross-price elasticities; employment

Chapter.  10596 words. 

Subjects: Macroeconomics and Monetary Economics

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