Redistributional Preference in Environmental Policy
Abstract
The paper deals with distributional issues in environmental economics. It considers a single-good market under perfect competition and a negative externality. The decision-maker uses an emission standard or an emission tax, whose revenue is recycled. Under the assumption that she distinguishes between (the groups of) consumers and producers and favors one group, social welfare is measured by a weighted sum of consumer and producer surplus. The optimal levels of both instruments are derived and compared: They can differ. The interaction between distributional considerations and efficiency is discussed.Download Info
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Bibliographic Info
Article provided by Mohr Siebeck, Tübingen in its journal FinanzArchiv.
Volume (Year): 63 (2007)
Issue (Month): 4 (December)
Pages: 548-562
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Web page: http://www.mohr.de/fa
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Postal: Mohr Siebeck GmbH & Co. KG, P.O.Box 2040, 72010 Tübingen, Germany
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Related research
Keywords: externality; optimal standard; optimal emission tax; redistribution; perfect competition;Find related papers by JEL classification:
- D62 - Microeconomics - - Welfare Economics - - - Externalities
- D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
- H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
- Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
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