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Environmental Goods and the Distribution of Income

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  • Udo Ebert

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Abstract

The paper presents a (theoretical) investigation of the distributional impacts of environmental commodities. It introduces an appropriate framework, defines concepts for measuring benefits and examines the determinants of benefit incidence within this setup. Its emphasis is on methodology and on recognizing the relevant economic variables and information. It turns out that in an “equal-preference” model the magnitude of the income elasticity of marginal willingness to pay for an environmental good is the crucial variable determining progressivity. It is related to a number of other elasticities which are more easily accessible to an empirical estimation. Copyright Kluwer Academic Publishers 2003

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File URL: http://hdl.handle.net/10.1023/A:1025052225929
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Bibliographic Info

Article provided by European Association of Environmental and Resource Economists in its journal Environmental and Resource Economics.

Volume (Year): 25 (2003)
Issue (Month): 4 (August)
Pages: 435-459

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Handle: RePEc:kap:enreec:v:25:y:2003:i:4:p:435-459

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Web page: http://www.springerlink.com/link.asp?id=100263

Related research

Keywords: determinants of benefit incidence; income distribution; nonmarket goods;

References

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  1. W. E. Diewert, 1974. "A Note on Aggregation and Elasticities of Substitution," Canadian Journal of Economics, Canadian Economics Association, vol. 7(1), pages 12-20, February.
  2. Hanemann, W Michael, 1991. "Willingness to Pay and Willingness to Accept: How Much Can They Differ?," American Economic Review, American Economic Association, vol. 81(3), pages 635-47, June.
  3. Udo Ebert, 1998. "Evaluation of Nonmarket Goods: Recovering Unconditional Preferences," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(2), pages 241-254.
  4. Flores, Nicholas E. & Carson, Richard T., 1997. "The Relationship between the Income Elasticities of Demand and Willingness to Pay," Journal of Environmental Economics and Management, Elsevier, vol. 33(3), pages 287-295, July.
  5. Kovenock, Daniel & Sadka, Efraim, 1981. "Progression under the benefit approach to the theory of taxation," Economics Letters, Elsevier, vol. 8(1), pages 95-99.
  6. Borcherding, Thomas E & Deacon, Robert T, 1972. "The Demand for the Services of Non-Federal Governments," American Economic Review, American Economic Association, vol. 62(5), pages 891-901, December.
  7. Baumol,William J. & Oates,Wallace E., 1988. "The Theory of Environmental Policy," Cambridge Books, Cambridge University Press, number 9780521322249, October.
  8. Freeman III, A. Myrick, 1985. "Methods for assessing the benefits of environmental programs," Handbook of Natural Resource and Energy Economics, in: A. V. Kneese† & J. L. Sweeney (ed.), Handbook of Natural Resource and Energy Economics, edition 1, volume 1, chapter 6, pages 223-270 Elsevier.
  9. Brennan, Geoffrey, 1976. "The Distributional Implications of Public Goods," Econometrica, Econometric Society, vol. 44(2), pages 391-99, March.
  10. Ebert, Udo & Lambert, Peter J, 1999. "Combined Income Taxes and Tax-Benefit Systems," The Economic Record, The Economic Society of Australia, vol. 75(231), pages 397-404, December.
  11. Stina Hökby & Tore Söderqvist, 2003. "Elasticities of Demand and Willingness to Pay for Environmental Services in Sweden," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 26(3), pages 361-383, November.
  12. Aaron, Henry & McGuire, Martin, 1970. "Public Goods and Income Distribution," Econometrica, Econometric Society, vol. 38(6), pages 907-20, November.
  13. Neary, J. P. & Roberts, K. W. S., 1980. "The theory of household behaviour under rationing," European Economic Review, Elsevier, vol. 13(1), pages 25-42, January.
  14. Johansson,Per-Olov, 1987. "The Economic Theory and Measurement of Environmental Benefits," Cambridge Books, Cambridge University Press, number 9780521348102, October.
  15. Ebert, Udo, 1997. "Selecting Preferences for Nonmarket Goods: Possibilities and Limitations," Public Finance = Finances publiques, , vol. 52(3-4), pages 301-17.
  16. Bengt Kristrom & Pere Riera, 1996. "Is the income elasticity of environmental improvements less than one?," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 7(1), pages 45-55, January.
  17. Snow, Arthur & Warren, Ronald Jr., 1983. "Tax progression in Lindahl equilibrium," Economics Letters, Elsevier, vol. 12(3-4), pages 319-326.
  18. Carson, Richard & Flores, Nicholas E. & Hanemann, W. Michael, 1998. "Sequencing and Valuing Public Goods," Journal of Environmental Economics and Management, Elsevier, vol. 36(3), pages 314-323, November.
  19. Baumol,William J. & Oates,Wallace E., 1988. "The Theory of Environmental Policy," Cambridge Books, Cambridge University Press, number 9780521311120, October.
  20. Maital, Shlomo, 1973. "Public Goods and Income Distribution: Some Further Results," Econometrica, Econometric Society, vol. 41(3), pages 561-68, May.
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Citations

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Cited by:
  1. Parry, Ian & Walls, Margaret & Sigman, Hilary & Williams III, Roberton, 2005. "The Incidence of Pollution Control Policies," Discussion Papers dp-05-24, Resources For the Future.
  2. Wolfgang Buchholz & Wolfgang Peters, 2008. "Equal sacrifice and fair burden-sharing in a public goods economy," International Tax and Public Finance, Springer, vol. 15(4), pages 415-429, August.
  3. Stina Hökby & Tore Söderqvist, 2003. "Elasticities of Demand and Willingness to Pay for Environmental Services in Sweden," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 26(3), pages 361-383, November.
  4. Hanley, Nicholas & Jacobsen, Jette Bredahl, 2008. "Are there income effects on global willingness to pay for biodiversity conservation?," Stirling Economics Discussion Papers 2008-03, University of Stirling, Division of Economics.
  5. Huhtala, Anni & Pouta, Eija, 2008. "User fees, equity and the benefits of public outdoor recreation services," Journal of Forest Economics, Elsevier, vol. 14(2), pages 117-132, April.
  6. Stefan Baumgaertner & Alexandra M. Klein & Denise Thiel & Klara Winkler, 2013. "Ramsey discounting of ecosystem services," Working Paper Series in Economics 281, University of Lüneburg, Institute of Economics.
  7. Gastineau, Pascal & Taugourdeau, Emmanuelle, 2014. "Compensating for environmental damages," Ecological Economics, Elsevier, vol. 97(C), pages 150-161.
  8. Pascal Gastineau & Emmanuelle Taugourdeau, 2013. "Compensating for environmental damages," EconomiX Working Papers 2013-21, University of Paris West - Nanterre la Défense, EconomiX.

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