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Climate Change, Heterogeneities, and Stability of International Fiscal Harmonization

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  • Cristina Grazia
  • François Gusdorf
  • Abdelhakim Hammoudi

Abstract

This paper analyzes the instability introduced into multilateral agreements by two types of heterogeneity: heterogeneity of countries (size and number of producing members) and heterogeneity of lobbies (asymmetric influence at the national versus the international level). The work extends theoretical prospective analyses on environmental taxation, as illustrated by the harmonization of fuel taxes. We show that the acceptability of the tax set at the multilateral level depends on the type of coalitions that participate in the multilateral negotiation (size and number of producing countries) and the asymmetry in the local (state-level) power of lobbies during negotiations. Copyright Springer Science+Business Media Dordrecht 2014

Suggested Citation

  • Cristina Grazia & François Gusdorf & Abdelhakim Hammoudi, 2014. "Climate Change, Heterogeneities, and Stability of International Fiscal Harmonization," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 58(4), pages 579-603, August.
  • Handle: RePEc:kap:enreec:v:58:y:2014:i:4:p:579-603
    DOI: 10.1007/s10640-013-9711-6
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