Abstract : Modern economies are confronted with major problems: the exhaustion of natural resources, the degradation of the environment and the financing of the needs of an aging population - all challenge the welfare of both present and future generations. This paper discusses a proposal which is designed to bring about a double dividend. On the one hand, a virgin resource tax could stimulate the reduction of natural resource use by making sustainable technologies economically profitable. On the other hand, it could provide a way to finance the pension system.
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