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| Takumi Haibara |
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| ''Quantity control reforms and the green transition'' |
| ( 2025, Vol. 45 No.4 ) |
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| The present paper offers an unconventional reform strategy that can mitigate the trade-off between the green transition and economic shocks. There are cases in which double tax cuts encourage a shift toward clean production without jeopardizing employment and/or overall taxed production. While the results depend on factor intensities, it can be argued that preserving output is more desirable than preserving employment, especially when implementing double tax cuts. The findings of this paper are particularly relevant for small open economies, where the scope for taxing dirty production is severely limited. |
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| Keywords: green transition; quantity control reforms; labor supply; factor intensities |
JEL: H2 - Taxation, Subsidies, and Revenue: General
F1 - Trade: General |
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| Manuscript Received : Feb 24 2025 | | Manuscript Accepted : Dec 30 2025 |
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