Travis Warziniack () (University of Heidelberg, Department of Economics) David Finnoff () (University of Wyoming) Jason F. Shogren () (University of Wyoming) Jonathan Bossenbroek () (University of Toledo) David Lodge () (University of Notre Dame)
Additional information is available for the following
registered author(s):
This paper develops a general equilibrium model to measure welfare effects of taxes for correcting environmental externalities caused by domestic trade, focusing on exter- nalities that arise through exports. Externalities from exports come from a number of sources. Domestically owned ships, planes, and automobiles can become contaminated while visiting other regions and bring unwanted pests home, and species can be in- troduced by contaminated visitors that enter a region to consume goods and services. The paper combines insights from the public finance literature on corrective environ- mental taxes and trade literature on domestically provided services. We find that past methods for measuring welfare effects are inadequate for a wide range of externalities and show the most widely used corrective mechanism, taxes on the sector imposing the environmental externality, may often do more harm than good. The motivation for this paper is the expansion of invasive species' ranges within the United States. We apply our analytical model to the specifc example of quagga and zebra mussel (Dreissena polymorpha and Dreissena rostiformis bugenis) invasion into the U.S Pacific Northwest.
Download Info
To download:
If you experience problems downloading a file, check if you have the
proper application to
view it first. Information about this may be contained
in the File-Format links below. In case of further problems read
the IDEAS help
page. Note that these files are not on the IDEAS
site. Please be patient as the files may be large.
Publisher Info
Paper provided by University of Heidelberg, Department of Economics in its series Working Papers with number
0481.