Six Distributional Effects of Environmental Policy
AbstractWhile prior literature has identified various effects of environmental policy, this note uses the example of a proposed carbon permit system to illustrate and discuss six different types of distributional effects: (1) higher prices of carbon-intensive products, (2) changes in relative returns to factors like labor, capital, and resources, (3) allocation of scarcity rents from a restricted number of permits, (4) distribution of the benefits from improvements in environmental quality, (5) temporary effects during the transition, and (6) capitalization of all those effects into prices of land, corporate stock, or house values. The note also discusses whether all six effects could be regressive, that is, whether carbon policy could place disproportionate burden on the poor.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. 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.
Bibliographic InfoPaper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 3299.
Date of creation: 2010
Date of revision:
tax incidence; climate policy; capitalization effects; general equilibrium;
Other versions of this item:
- Don Fullerton, 2011. "Six Distributional Effects of Environmental Policy," NBER Working Papers 16703, National Bureau of Economic Research, Inc.
- H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
- Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Costs; Distributional Effects; Employment Effects
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.:
- Olivier Deschênes & Michael Greenstone, 2007.
"Climate Change, Mortality, and Adaptation: Evidence from Annual Fluctuations in Weather in the US,"
0707, Massachusetts Institute of Technology, Center for Energy and Environmental Policy Research.
- Olivier Desch�nes & Michael Greenstone, 2011. "Climate Change, Mortality, and Adaptation: Evidence from Annual Fluctuations in Weather in the US," American Economic Journal: Applied Economics, American Economic Association, vol. 3(4), pages 152-85, October.
- Olivier Deschênes & Michael Greenstone, 2007. "Climate Change, Mortality, and Adaptation: Evidence from Annual Fluctuations in Weather in the US," NBER Working Papers 13178, National Bureau of Economic Research, Inc.
- Vandyck, Toon, 2013. "Efficiency and Equity Aspects of Energy Taxation," EUROMOD Working Papers EM12/13, EUROMOD at the Institute for Social and Economic Research.
- Mohajan, Haradhan, 2011. "Optimal Environmental Taxes Due to Health Effect," MPRA Paper 50672, University Library of Munich, Germany, revised 17 Apr 2011.
- Haradhan Kumar Mohajan, 2011. "Optimal Environmental Taxes Due to Health Effect," KASBIT Journal of Management & Social Science, Khadim Ali Shah Bukhari Institute of Technology (KASBIT), vol. 4, pages 1-19, December.
- Grainger, Corbett A., 2012. "The distributional effects of pollution regulations: Do renters fully pay for cleaner air?," Journal of Public Economics, Elsevier, vol. 96(9-10), pages 840-852.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Julio Saavedra).
If references are entirely missing, you can add them using this form.