Kuper 1996 Netherlands Energy Taxes

Double dividend hypothesis: Bovenberg and Van der Ploeg – higher pollution taxes would clean up enviro and boost employment Paper uses model to look at effect on employment of higher energy prices and lower nominal wages (as result of shift in taxes away from labor – BUT WHY DOES THIS LOWER NOMINAL WAGE?). Conclude that shifting taxes from labor toward energy reduces economic activity B and VdP find increased concern for the environment reduces employment Uses vintage approach to modeling economic growth – stock of capital built up from different vintages – newer=more efficient Would need to look at this more carefully to understand how assumptions and aspects of model affect results.