Tax reform and the environment in developing economies: Is a double dividend possible?


I. Coxhead

Type of Document:
Research Report


University of Wisconsin

Date of Publication:

Place of Publication:
Madison, WI


Abstract: We reconsider some analytical arguments on the double dividend, focusing on the small open

developing economy case. Compared with the large, mature industrial economies usually considered, such economies differ in several respects, including the structure of tax revenues,commodity pricing and sectoral factor intensities. While a double dividend from environmentally motivated taxes is not assured, the range of conditions for its existence seems broader than usually implied. Empirically, the scope for achieving both environmental improvements and diminished excess burden in developing economies may be greater as a side-effect of the reform of existing taxes than from imposition of explicit environmental taxes.

Additional Bibliographic Information

Agriculture and Applied Economics Staff Paper no. 431

Send us your questions or comments

Your Name (required)

Your Email (required)


Please enter this text: