Implementing a double dividend: Recycling ecotaxes towards lower labour taxes

Antonio Manresa, Ferran Sancho

Research output: Contribution to journalArticleResearchpeer-review

40 Citations (Scopus)


In this paper, we follow the tradition of applied general equilibrium modelling of the Walrasian static variety to study the empirical viability of a double dividend (green, welfare, and employment) in the Spanish economy. We consider a counterfactual scenario in which an ecotax is levied on the intermediate and final use of energy goods. Under a revenue neutral assumption, we evaluate the real income and employment impact of lowering payroll taxes. To appraise to what extent the model structure and behavioural assumptions may influence the results, we perform simulations under a range of alternative model and policy scenarios. We conclude that a double dividend-better environmental quality, as measured by reduced CO2 emissions, and improved levels of employment-may be an achievable goal of economic policy. © 2004 Elsevier Ltd. All rights reserved.
Original languageEnglish
Pages (from-to)1577-1585
JournalEnergy Policy
Publication statusPublished - 1 Aug 2005


  • Double dividend
  • Ecotaxes
  • Tax recycling

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