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Interview with Prof. Anil Markandya on "Environmental Fiscal Reform"
Already in 1991, David Pearce indicated that switching taxation from labour to environmental externalities could lead to a double dividend. This concept entails the possibility of improving not only the environment, but also the economy, thanks for instance to the emerging of the shadow economy. This may be particularly relevant, as informal markets account for a significant and growing part of GDP in many developed economies such as Italy and Spain. Anil Markandya, Scientific director of the Basque Center for Climate Change, gives an overview of his recent works on these issues.