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Environmental migration and capital mobility

Version 2 2024-06-03, 17:53
Version 1 2016-01-07, 11:00
journal contribution
posted on 2024-06-03, 17:53 authored by CC Chao, Mong Shan EeMong Shan Ee, JP Laffargue, ESH Yu
Based on utility equalization, this paper considers a developing economy with labor migration. Pollution and capital taxes are imposed on producers in the polluted sector. The optimal policy combinations of capital taxes and pollution taxes for the host economy are examined. A zero capital tax is required for increasing mobility of capital to raise real GDP, while a larger than Pigovian pollution tax is needed for enhancing environmental amenities. The impacts on those two optimal tax rates are examined theoretically and numerically if foreign countries adopt higher environmental standards or if foreign countries impose tax credits on foreign investments.

History

Journal

International review of economics and finance

Volume

42

Pagination

430-441

Location

Amsterdam, The Netherlands

ISSN

1059-0560

Language

eng

Publication classification

C Journal article, C1 Refereed article in a scholarly journal

Copyright notice

2016, Elsevier

Publisher

Elsevier