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Legislative Organization and Pollution Taxation

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Author Info
Per Fredriksson ()
Daniel Millimet

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Abstract

The role of political institutions in shaping public policy has been analyzed in isolation from corruption, and legislative organization (specifically, bicameralism) has received minimal attention. We analyze pollution taxation when decisions are influenced by several veto players, such as legislative chambers. Our theory predicts that an increase in the number of veto players (e.g., moving from uni- to bi-cameralism) pushes the pollution tax towards the social optimum, with the effect being conditional on corruption. As such, dispersion around the optimal tax is lower under bicameralism. Empirical tests – using data from 86 countries – support the theory. Copyright Springer Science+Business Media, LLC 2007

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File URL: http://hdl.handle.net/10.1007/s11127-006-9114-0
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Publisher Info
Article provided by Springer in its journal Public Choice.

Volume (Year): 131 (2007)
Issue (Month): 1 (April)
Pages: 217-242
Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Handle: RePEc:kap:pubcho:v:131:y:2007:i:1:p:217-242

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Web page: http://www.springerlink.com/link.asp?id=100332

For technical questions regarding this item, or to correct its listing, contact: (Christopher F. Baum).

Related research
Keywords: Environmental policy; Veto players; Bicameralism; Corruption; Taxes;

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. Daniel Diermeier & Roger B. Myerson, 1999. "Bicameralism and Its Consequences for the Internal Organization of Legislatures," American Economic Review, American Economic Association, vol. 89(5), pages 1182-1196, December. [Downloadable!] (restricted)
  2. Persson, Torsten & Tabellini, Guido, 1999. "The Size and Scope of Government: Comparative Politics With Rational Politicians," CEPR Discussion Papers 2051, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  3. Gian Maria Milesi-Ferretti & Roberto Perotti & Massimo Rostagno, 2002. "Electoral Systems And Public Spending," The Quarterly Journal of Economics, MIT Press, vol. 117(2), pages 609-657, May. [Downloadable!] (restricted)
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  4. Pranab Bardhan, 1997. "Corruption and Development: A Review of Issues," Journal of Economic Literature, American Economic Association, vol. 35(3), pages 1320-1346, September. [Downloadable!] (restricted)
  5. Torsten Persson & Guido Tabellini & Francesco Trebbi, 2003. "Electoral Rules and Corruption," Journal of the European Economic Association, MIT Press, vol. 1(4), pages 958-989, 06. [Downloadable!] (restricted)
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  6. Bennedsen, Morten & Feldmann, Sven E., 2002. "Lobbying and Legislative Organization The Effect of the Vote of Confidence Procedure," Working Papers 01-2002, Copenhagen Business School, Department of Economics. [Downloadable!]
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  7. Persson, Torsten & Roland, Gerard & Tabellini, Guido, 1997. "Separation of Powers and Political Accountability," The Quarterly Journal of Economics, MIT Press, vol. 112(4), pages 1163-1202, November.
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  8. Riddel, Mary, 2003. "Candidate eco-labeling and senate campaign contributions," Journal of Environmental Economics and Management, Elsevier, vol. 45(2), pages 177-194, March. [Downloadable!] (restricted)
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  10. Aidt, Toke S., 1998. "Political internalization of economic externalities and environmental policy," Journal of Public Economics, Elsevier, vol. 69(1), pages 1-16, July. [Downloadable!] (restricted)
  11. Fredriksson, Per G. & Millimet, Daniel L., 2004. "Electoral rules and environmental policy," Economics Letters, Elsevier, vol. 84(2), pages 237-244, August. [Downloadable!] (restricted)
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  13. Andrea Prat & Aldo Rustichini, 2003. "Games Played Through Agents," Econometrica, Econometric Society, vol. 71(4), pages 989-1026, 07. [Downloadable!] (restricted)
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  16. Fredriksson, Per G. & Millimet, D.L.Daniel L., 2004. "Comparative politics and environmental taxation," Journal of Environmental Economics and Management, Elsevier, vol. 48(1), pages 705-722, July. [Downloadable!] (restricted)
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  19. Hoynes, Hilary & Bitler, Marianne P. & Gelbach, Jonah, 2005. "What Mean Impacts Miss: Distributional Effects of Welfare Reform Experiments," Working Papers 05-31, University of California at Davis, Department of Economics. [Downloadable!]
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  20. Alessandro Lizzeri & Nicola Persico, 2001. "The Provision of Public Goods under Alternative Electoral Incentives," American Economic Review, American Economic Association, vol. 91(1), pages 225-239, March. [Downloadable!] (restricted)
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  21. John Charles Bradbury & W. Mark Crain, 2002. "Bicameral Legislatures and Fiscal Policy," Southern Economic Journal, Southern Economic Association, vol. 68(3), pages 646-659, January.
  22. Bergemann, Dirk & Valimaki, Juuso, 2003. "Dynamic common agency," Journal of Economic Theory, Elsevier, vol. 111(1), pages 23-48, July. [Downloadable!] (restricted)
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  23. Mauro, Paolo, 1998. "Corruption and the composition of government expenditure," Journal of Public Economics, Elsevier, vol. 69(2), pages 263-279, June. [Downloadable!] (restricted)
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.)

  1. Aidt, T.S. & Hwang, U., 2008. "One Cheer for Foreign Lobbying," Cambridge Working Papers in Economics 0860, Faculty of Economics, University of Cambridge. [Downloadable!]
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