Optimal Environmental Taxes Due to Health Effect
AbstractThis paper shows that the optimal environmental tax should be less than the marginal environmental damages; since the presence of pre-existing distortionary taxes, increasing the welfare costs is associated with the overall tax code. The reduction of pollution causes the benefits of health by supplying maximum labors to create benefit-side tax interactions, which will tend to reduce the optimal environmental taxes. The paper also shows that the existence of social security system preserves the gross wage of labors during sick days and grants subsidies to medical treatments. An attempt is made to confirm that health effects labor supply, which results in an additional impact, the benefit-side tax-interaction effect.
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Bibliographic InfoArticle provided by Khadim Ali Shah Bukhari Institute of Technology (KASBIT) in its journal KASBIT Bussiness Journal.
Volume (Year): 4 (2011)
Issue (Month): (December)
Contact details of provider:
Web page: http://kasbit.edu.pk/academics/academic-departments/marketing-management/
More information through EDIRC
Environmental Pollution; Optimal Environmental Taxes; Public Good; Budget Constraints;
Find related papers by JEL classification:
- B22 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Macroeconomics
- E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy
- H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
- H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
- I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
- K23 - Law and Economics - - Regulation and Business Law - - - Regulated Industries and Administrative Law
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