Environment, Health and Labor Market

We re-examine the impact of environmental taxation on health and output, in the presence of labor market frictions. Our main findings are that matching process and wage bargaining introduce new channels of transmission of environmental taxation on the economy such that assuming perfect labor market leads to over-estimate the positive impact of environmental taxation on health. We also demonstrate that rising abatement expenditures as a way of tightening the environmental policy would be better for health than increasing environmental tax in the presence of market labor imperfections.


Issue Date:
Sep 11 2017
Publication Type:
Working or Discussion Paper
Language:
English
Total Pages:
36
JEL Codes:
I1, J2, J64, Q58
Series Statement:
36.2017




 Record created 2017-09-15, last modified 2017-09-15

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