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Environmental Goods and the Distribution of Income

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Author Info
Udo Ebert ()
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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Publisher 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

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

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Snow, Arthur & Warren, Ronald Jr., 1983. "Tax progression in Lindahl equilibrium," Economics Letters, Elsevier, vol. 12(3-4), pages 319-326. [Downloadable!] (restricted)
  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. [Downloadable!] (restricted)
  3. 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. [Downloadable!] (restricted)
    Other versions:
  4. Maital, Shlomo, 1973. "Public Goods and Income Distribution: Some Further Results," Econometrica, Econometric Society, vol. 41(3), pages 561-68, May. [Downloadable!] (restricted)
  5. 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. [Downloadable!] (restricted)
  6. 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. [Downloadable!] (restricted)
  7. 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.
  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. [Downloadable!] (restricted)
  9. 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. [Downloadable!] (restricted)
  10. Brennan, Geoffrey, 1976. "The Distributional Implications of Public Goods," Econometrica, Econometric Society, vol. 44(2), pages 391-99, March. [Downloadable!] (restricted)
  11. Aaron, Henry & McGuire, Martin, 1970. "Public Goods and Income Distribution," Econometrica, Econometric Society, vol. 38(6), pages 907-20, November. [Downloadable!] (restricted)
  12. 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. [Downloadable!] (restricted)
  13. Kovenock, Daniel & Sadka, Efraim, 1981. "Progression under the benefit approach to the theory of taxation," Economics Letters, Elsevier, vol. 8(1), pages 95-99. [Downloadable!] (restricted)
  14. 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. [Downloadable!] (restricted)
  15. 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. [Downloadable!] (restricted)
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  16. Ted Bergstrom & Robert Goodman, 1973. "Private Demands for Public Goods," University of California at Santa Barbara, Economics Working Paper Series 1973C, Department of Economics, UC Santa Barbara. [Downloadable!]
    Other versions:
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  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. [Downloadable!]
    Other versions:
  2. Wolfgang Buchholz & Wolfgang Peters, 2007. "Equal Sacrifice and Fair Burden Sharing in a Public Goods Economy," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
    Other versions:
  3. Jette Jacobsen & Nick Hanley, 2009. "Are There Income Effects on Global Willingness to Pay for Biodiversity Conservation?," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 43(2), pages 137-160, June. [Downloadable!] (restricted)
    Other versions:
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