Green Tax Reform and Competitiveness
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Erkki Koskela; Hans-Werner Sinn; Ronnie Schöb
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Article
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2001
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John Wiley and Sons
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English
⚖ 152 KB
## Abstract This paper studies a revenue-neutral green tax reform that substitutes energy for wage taxes in an open economy with unemployment. As long as the labour tax rate exceeds the energy tax rate, such a reform will increase employment, reduce the domestic firms' unit cost of production and