In this paper, we study the empirical viability of a double dividend (green, welfare, and employment) in the Spanish economy. We consider a counterfactual scenario in which an ecotax is levied on the intermediate and final use of energy goods. Under a revenue neutral assumption, we evaluate the real income and employment impact of lowering payroll taxes. We conclude that a double dividend—better environmental quality, as measured by reduced CO2 emissions, and improved levels of employment—may be an achievable goal of economic policy.