Green Policies and Public Finance in a Small Open Economy
研究了在次优框架下，更环保的偏好如何影响公共财政、就业和国内资本存量，发现通常会导致资本外逃和就业下降，而私人效用和公共消费的变化取决于劳动供给弹性。
We explore the effects of greener preferences for the public finances, employment, and the domestic capital stock in a second-best framework. We find that greener preferences typically result in capital flight. Also, employment declines despite the factor substitution that is induced by a lower tax on labor and a higher tax on natural resources. If the uncompensated wage elasticity of labor supply is positive, private utility declines. Public consumption, in contrast, may rise if most of the improvement in environmental quality occurs through a lower level rather than a cleaner composition of economic activity. However, if the labor supply curve bends backwards, private utility rises while public consumption falls. Copyright 1994 by The editors of the Scandinavian Journal of Economics.