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Modelling

Green Tax Reforms and Computational Economics: A Do-it-yourself Approach

The double or even triple dividend hypothesis of green tax reforms has been a major issue of dispute in both the scientific community and the political arena during the last decade. Theoretical analysis has provided a number of important qualitative insights to the debate but lacks of actual policy relevance due to very restrictive assumptions. Applied research that takes the step from stylised analytical to complex numerical models usually comes as a black-box to non-expert modelers. This paper aims at bridging the gap between stylised theoretical work and numerical analysis. We develop a flexible, interactive simulation model which is accessible under "Green Tax Reforms and Computational Economics: A Do-it-yourself Approach". Users can specify their own green tax reforms and evaluate the induced economic and environmental effects. Based on illustrative simulations, we demonstrate the usefulness of our do-it-yourself approach for a better understanding of the double (triple) dividend hypothesis.

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