Title of article
The Effects of Green Tax Implementation on Labor Demand in Iranian Industry Sector
Author/Authors
Lotfalipour, Mohammad Reza Facualty of Economics and Administrative Science - Ferdowsi University of Mashhad, Mashhad , Zohourian, Elmira Ferdowsi University of Mashhad, Mashhad , Fallahi, Mohammad Ali Facualty of Economics and Administrative Science - Ferdowsi University of Mashhad, Mashhad , Ashena, Malihe Social Science Department - Bozorgmehr University of Qaenat, Qaenat
Pages
13
From page
61
To page
73
Abstract
Environmental tax reform can be used in a fundamental transformation towards a green economy. Green tax may reduce the energy consumption and pollution emissions, as well as other economic benefits. This study mainly focused on the effects of green taxes on labor demand in Iranian industry sector during 1980 – 2015. Regarding the double dividend hypothesis, green taxes may improve the employment by substitution between labor and energy. Using CES production function, the elasticity of substitution between labor and energy is estimated 0.48 percent for industry sector. Then, the effect of green taxes on labor demand is investigated subject to government’s fixed budget constraint and labor demand function. The results show that green tax will have positive effects on employment in the industry. During the transfer of the labor tax system to the green tax system, the environment and employment may improve, without additional cost to the government and producer.
Keywords
Green Tax , Double dividend , Employment , CES production function , Iran
Journal title
Petroleum Business Review (PBR)
Serial Year
2020
Record number
2555229
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