Advanced Search
MyIDEAS: Login to save this article or follow this journal

Environmental Taxation in Open Economies: Unilateralism or Partial Harmonization

Contents:

Author Info

  • Helmuth Cremer

    ()
    (University of Toulouse)

  • Firouz Gahvari

    (Department of Economics, University of Illinois at Urbana-Champaign)

Abstract

There are two reasons why countries might set weak environmental policies: transboundary pollution and concerns for competitiveness. This article explores the full interactions between these two features within a unified general equilibrium framework. First, we show that competitive concerns change the structure of output taxes but not that of emission taxes. They lead to a lowering of output taxes, lower polluting good prices, an increase in emission taxes, adoption of less (or same) polluting technologies, increased aggregate emissions, and lower overall welfare levels. Second, we show that partially harmonizing commodity taxes, above their unrestricted Nash equilibrium value, can potentially hurt as well as improve the pollution technology, overall quality of the environment and welfare. The three attributes move positively together. On the other hand, harmonizing of emission taxes above their Nash equilibrium values appear to always lead to improvements in the environment and welfare via adoption of cleaner technologies.

Download Info

To our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.

Bibliographic Info

Article provided by Southern Economic Association in its journal Southern Economic Journal.

Volume (Year): 72 (2005)
Issue (Month): 2 (October)
Pages: 352–371

as in new window
Handle: RePEc:sej:ancoec:v:72:2:y:2005:p:352-371

Contact details of provider:
Web page: http://www.southerneconomic.org/
More information through EDIRC

Related research

Keywords:

Find related papers by JEL classification:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Michael S. Michael & Panos Hatzipanayotou, 2013. "Cooperative and Non-Cooperative Equilibrium Consumption Taxes in the Presence of Cross-Border Pollution," CESifo Working Paper Series 4501, CESifo Group Munich.
  2. Aronsson, Thomas & Persson, Lars & Sjögren, Tomas, 2006. "Optimal Taxation and Transboundary Externalities - Are Endogenous World Market Prices Important?," UmeÃ¥ Economic Studies, UmeÃ¥ University, Department of Economics 699, Umeå University, Department of Economics.
  3. Ganelli, Giovanni & Tervala, Juha, 2011. "International transmission of environmental policy: A New Keynesian perspective," Ecological Economics, Elsevier, Elsevier, vol. 70(11), pages 2070-2082, September.
  4. Calbick, K.S. & Gunton, Thomas, 2014. "Differences among OECD countries’ GHG emissions: Causes and policy implications," Energy Policy, Elsevier, Elsevier, vol. 67(C), pages 895-902.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:sej:ancoec:v:72:2:y:2005:p:352-371. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Laura Razzolini).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.