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A Second-Best Analysis of Environmental Subsidies Author info | Abstract | Publisher info | Download info | Related research | Statistics Ian Parry
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This paper examines the complications posed by pre-existing tax distortions in the economy, for the evaluation of a variety of subsidy policies that affect the environment. These complications include not only the efficiency cost of financing the subsidy by distortionary taxation, but also the interaction effects between the subsidized market and markets with pre-existing taxes. Studies that ignore both of these effects, or only incorporate the first type of effect, can be highly misleading. Copyright Kluwer Academic Publishers 1998
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Article provided by Springer in its journal International Tax and Public Finance .
Volume (Year): 5 (1998)
Issue (Month): 2 (May)
Pages: 153-170
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Handle: RePEc:kap:itaxpf:v:5:y:1998:i:2:p:153-170Contact details of provider: Web page: http://www.springerlink.com/link.asp?id=102915
For technical questions regarding this item, or to correct its listing, contact: (Christopher F. Baum).
Keywords: externalities ; subsidies ; pre-existing taxes ; welfare impacts ; Other versions of this item:
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.: Ballard, Charles L & Shoven, John B & Whalley, John, 1985.
"General Equilibrium Computations of the Marginal Welfare Costs of Taxes in the United States ,"
American Economic Review ,
American Economic Association, vol. 75(1), pages 128-38, March.
[Downloadable!] (restricted)
Wildasin, David E, 1984.
"On Public Good Provision with Distortionary Taxation ,"
Economic Inquiry ,
Oxford University Press, vol. 22(2), pages 227-43, April.
Larsen, Bjorn & Shah, Anwar & DEC, 1992.
"World fossil fuel subsidies and global carbon emissions ,"
Policy Research Working Paper Series
1002, The World Bank.
[Downloadable!]
Parry Ian W. H., 1995.
"Pollution Taxes and Revenue Recycling ,"
Journal of Environmental Economics and Management ,
Elsevier, vol. 29(3), pages S64-S77, November.
[Downloadable!] (restricted)
Browning, Edgar K, 1987.
"On the Marginal Welfare Cost of Taxation ,"
American Economic Review ,
American Economic Association, vol. 77(1), pages 11-23, March.
[Downloadable!] (restricted)
Gupta, Sanjeev & Miranda, Kenneth & Parry, Ian, 1995.
"Public expenditure policy and the environment: A review and synthesis ,"
World Development ,
Elsevier, vol. 23(3), pages 515-528, March.
[Downloadable!] (restricted)
Other versions: Goulder Lawrence H., 1995.
"Effects of Carbon Taxes in an Economy with Prior Tax Distortions: An Intertemporal General Equilibrium Analysis ,"
Journal of Environmental Economics and Management ,
Elsevier, vol. 29(3), pages 271-297, November.
[Downloadable!] (restricted)
Ballard, Charles L & Fullerton, Don, 1992.
"Distortionary Taxes and the Provision of Public Goods ,"
Journal of Economic Perspectives ,
American Economic Association, vol. 6(3), pages 117-31, Summer.
[Downloadable!] (restricted)
Other versions:
Full
references 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.)
Don Fullerton & Gilbert Metcalf, 1997.
"Environmental Controls, Scarcity Rents, and Pre-Existing Distortions ,"
NBER Working Papers
6091, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)
Other versions:
Don Fullerton & Gilbert E. Metcalf, 1997.
"Environmental Controls, Scarcity Rents, and Pre-Existing Distortions ,"
Discussion Papers Series, Department of Economics, Tufts University
9703, Department of Economics, Tufts University.
[Downloadable!] Fullerton, Don & Metcalf, Gilbert E., 2001.
"Environmental controls, scarcity rents, and pre-existing distortions ,"
Journal of Public Economics ,
Elsevier, vol. 80(2), pages 249-267, May.
[Downloadable!] (restricted) Parry, Ian, 2003.
"Fiscal Interactions and the Case for Carbon Taxes over Grandfathered Carbon Permits ,"
Discussion Papers
dp-03-46, Resources For the Future.
[Downloadable!]
Other versions: Maia David & Bernard Sinclair-Desgagné, 2007.
"Revisiting the environmental subsidy in the presence of an eco-industry ,"
Working Papers
hal-00243054_v1, HAL.
[Downloadable!]
Jean-Christophe Caffet, 2005.
"Health effects and optimal environmental taxes in welfare state countries ,"
Cahiers de la Maison des Sciences Economiques
v05049, Université Panthéon-Sorbonne (Paris 1).
[Downloadable!]
Stéphan Marette & Jutta Roosen & Sandrine Blanchemanche, 2008.
"Taxes and subsidies to change eating habits when information is not enough: an application to fish consumption ,"
Journal of Regulatory Economics ,
Springer, vol. 34(2), pages 119-143, October.
[Downloadable!] (restricted)
Parry, Ian W.H. & Goulder, Lawrence H., 2008.
"Instrument Choice in Environmental Policy ,"
Discussion Papers
dp-08-07, Resources For the Future.
[Downloadable!]
Other versions: Parry, Ian, 1997.
"Agricultural Policies in the Presence of Distorting Taxes ,"
Discussion Papers
dp-98-05, Resources For the Future.
[Downloadable!]
Parry, Ian, 2001.
"On the Efficiency of Public and Private Health Care Systems: An Application to Alternative Health Policies in the United Kingdom ,"
Discussion Papers
dp-01-07, Resources For the Future.
[Downloadable!]
Don Fullerton & Robert D. Mohr, 2003.
"Suggested Subsidies are Sub-optimal Unless Combined with an Output Tax ,"
The B.E. Journal of Economic Analysis & Policy ,
Berkeley Electronic Press, vol. 0(1).
[Downloadable!]
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