Environmental taxation and the double dividend Environmental Taxation and the Double Dividend explores the welfare effects of environmental taxes in a second best framework. It starts from a benchmark model which reveals that environmental taxes typically exacerbate pre existing tax distortions even if the revenues are used to cut other distortionary taxes. Subsequent chapters extend the benchmark model by introducing capital terms of trade effects transfers involuntary unemployment or environmental feedbacks. Thus the book reveals several channels through which a double dividend can be obtained. However it also shows the trade offs they induce. Simulations with the models illustrate the importance of these trade offs for European economies. This book is a useful tool for graduates post graduates researchers and staff of universities with fiscal and environmental departments. International organizations such as the IMF OECD and the World Bank and policy makers within governments: Ministries of Finance Economics Environment. Research Institutes both private and public will also benefit from this piece of work Introduction R. A. de Mooij A survey of the double dividend literature R. A. de Mooij Environmental taxes as trade policy instruments R. A. de Mooij Environmental taxes and distributional concerns R. A. de Mooij Labor market imperfections and the triple dividend R. A. de Mooij Feedback effects of the environment on the economy R. A. de Mooij Green tax reform in an endogenous growth model Conclusions R. A. de Mooij Environmental tax reform in the benchmark model R. A. de Mooij The role of capital mobility and factor substitution R. A. de Mooij. Environmental Taxation and the Double Dividend explores the welfare effects of environmental taxes in a second best framework. It starts from a benchmark model which reveals that environmental taxes typically exacerbate pre existing tax distortions even if the revenues are used to cut other distortionary taxes. Subsequent chapters extend the benchmark model by introducing capital terms of trade effects transfers involuntary unemployment or environmental feedbacks. Thus the book reveals several channels through which a double dividend can be obtained. However it also shows the trade offs they induce. Simulations with the models illustrate the importance of these trade offs for European economies. This book is a useful tool for graduates post graduates researchers and staff of universities with fiscal and environmental departments. International organizations such as the IMF OECD and the World Bank and policy makers within governments: Ministries of Finance Economics Environment. Research Institutes both private and public will also benefit from this piece of work