Strategic pigouvian taxation, stock externalities and polluting non-renewable resources
AbstractThis paper extends Wirl and DocknerÂ¿s (1995) model designed to analyze the long-term bilateral interdependence between a resource exporting cartel and a coalition of resource importing country governments. Firstly, depletion effects are introduced into the analysis of the intertemporal properties of a pigouvian tax. Secondly, the feedback Stackelberg equilibria are computed. The results show that the dynamics of the tax depends critically on the level of the marginal environmental damage. Moreover, they also show that the tax defined by the Markov-perfect Nash equilibrium is a neutral pigouvian tax in the sense that it only corrects the market inefficiency caused by the stock externality. However, for the feedback Stackelberg equilibrium the tax is advantageous for the importing countries since the strategic pigouvian taxation reduces the market power of the cartel. Este trabajo propone una extensiÃ³n del modelo de Wirl y Dockner (1995) diseÃ±ado para analizar lainterdependencia bilateral a largo plazo entre un cartel exportador de un recurso y una coaliciÃ³n depaÃses importadores. En primer lugar, se incorporan los efectos agotamiento al anÃ¡lisis de laspropiedades intertemporales de un impuesto pigouviano. En segundo lugar, se calculan los equilibriosfeedback de Stackelberg. Los resultados muestran que la dinÃ¡mica del impuesto dependecriticamente del nivel del daÃ±o medioambiental marginal. AdemÃ¡s, tambiÃ©n demuestran que elimpuesto definido por el equilibrio de Nash perfecto de Markov es un impuesto pigouviano neutral en elsentido que sÃ³lo corrige la ineficiencia causada por la externalidad del stock. Sin embargo, para elequilibrio feedback de Stackelberg el impuesto es ventajoso para los paÃses importadores ya que laimposiciÃ³n pigouviana estratÃ©gica reduce el poder de mercado del cartel.
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Bibliographic InfoArticle provided by Elsevier in its journal Journal of Public Economics.
Volume (Year): 79 (2001)
Issue (Month): 2 (February)
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Web page: http://www.elsevier.com/locate/inca/505578
Other versions of this item:
- Santiago J. Rubio & Luisa Escriche, 1998. "- Strategic Pigouvian Taxation, Stock Externalities And Polluting Non-Renewable Resources," Working Papers. Serie EC 1998-23, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
- D62 - Microeconomics - - Welfare Economics - - - Externalities
- F02 - International Economics - - General - - - International Economic Order; Noneconomic International Organizations;; Economic Integration and Globalization: General
- H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
- Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy
- Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
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