Double dividend in solving the problem of externalities

Abstract

Purpose: this article is devoted to the study of the possibility of obtaining a double dividend in solving the problem of environmental externalities. Discussion: еnvironmental taxation has seen as an effective economic instrument for internalizing environmental externalities. Conventional economic theory suggests that increasing the price of normal goods and services through the use of a tax reduces demand. There is a research line that claims that an environmental tax reform that increases the environmental taxes and, at the same time, reduces other taxes, keeping the same government revenue, generates a double benefit, by reducing negative environmental impacts and improving the economy. Results: environmental payments make up a small share of the state budget revenue. Environmental payment rates tend to increase, but they are too low, which makes it impossible to obtain double benefits.