ABSTRACT
The concept of a double dividend from environmental taxes is still a relatively recent phenomenon, so it is not surprising that it is an issue that is far from resolved. Environmental taxation to enhance economic policy performance has attracted increased interest in the 1990s both among policy-makers and academics. While there has been a long tradition in advocating the use of taxation for environmental purposes, recent attention has placed emphasis on the opportunities of using environmental taxes to achieve a range of other policy objectives. This interest in the additional benefits from using environmental taxes has become categorized as the double dividend debate. Goulder has distinguished several versions of the double dividend claim where the environment dividend is taken as given, so the distinguishing variable is the recycling of the revenues collected to ensure a revenue-neutral budget change. The main category of environmental price measures occurs in the form of indirect taxes.
