Can carbon taxation reduce Spanish unemployment

In this paper we present a computational general equilibrium model for the Spanish economy. The model focuses in CO2 emissions, labour market and double dividend theory. Labour markets are assumed to follow a matching unemployment rule, which allows to model in a simple way any frictions present in that market. We are interested in combining traditional scal policies to ght unemployment with new policy instruments. The simulation is focused on the double dividend theory. We want to decrease CO2 emission levels and, at the same time, reach some employment creation mainly for unskilled workers. High level of unemployment and high social security contributions in Spain can justify this measure