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Unemployment, rural-urban migration and environmental regulation

Kuralbayeva, Karlygash (2018) Unemployment, rural-urban migration and environmental regulation. Review of Development Economics, 22 (2). pp. 507-539. ISSN 1363-6669

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Identification Number: 10.1111/rode.12360


This paper develops a general equilibrium model that incorporates specific features pertaining to developing countries: a large informal sector and rural-urban migration. A calibrated version of the model is used to study the effects of energy tax changes and a reduction in agricultural-sector energy subsidies on labor market outcomes. The results indicate that the incidence of energy taxes is partly shifted on to the rural sector through rural-urban migration. The results thus highlight the importance of modeling the features particular to developing countries and the economic general equilibrium effects when assessing the impact of environmental taxation in those countries.

Item Type: Article
Official URL:
Additional Information: © 2017 The Authors © CC-BY 4.0
Divisions: Grantham Research Institute
Subjects: G Geography. Anthropology. Recreation > GE Environmental Sciences
H Social Sciences > HB Economic Theory
JEL classification: H - Public Economics > H2 - Taxation, Subsidies, and Revenue > H20 - General
H - Public Economics > H2 - Taxation, Subsidies, and Revenue > H23 - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
H - Public Economics > H3 - Fiscal Policies and Behavior of Economic Agents > H30 - General
Date Deposited: 12 May 2017 09:20
Last Modified: 28 Jun 2024 22:36
Projects: ES/K006576/1
Funders: Economic and Social Research Council

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