Advanced Search
MyIDEAS: Login to save this paper or follow this series

Cooperative and Non-Cooperative Equilibrium Consumption Taxes in the Presence of Cross-Border Pollution

Contents:

Author Info

  • Michael S. Michael
  • Panos Hatzipanayotou

Abstract

We consider a two small open economies model with cross-border pollution that is generated from consumption. Within this framework we examine i) the non-cooperative equilibrium consumption taxes and compare them to when pollution is only local, ii) the cooperative equilibrium consumption taxes and we compare them to the non-cooperative tax rates, and iii) cases where cooperative taxes are different between countries. In this framework, tax harmonization may not be the optimal policy if, for example, pollution per unit of consumption differ between countries. Many results of the paper depend on the relationship in consumption (i.e., complementarity or substitutability) between pollution and the polluting good.

Download Info

If 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.
File URL: http://www.cesifo-group.de/portal/page/portal/DocBase_Content/WP/WP-CESifo_Working_Papers/wp-cesifo-2013/wp-cesifo-2013-11/cesifo1_wp4501.pdf
Download Restriction: no

Bibliographic Info

Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 4501.

as in new window
Length:
Date of creation: 2013
Date of revision:
Handle: RePEc:ces:ceswps:_4501

Contact details of provider:
Postal: Poschingerstrasse 5, 81679 Munich
Phone: +49 (89) 9224-0
Fax: +49 (89) 985369
Email:
Web page: http://www.cesifo.de
More information through EDIRC

Related research

Keywords: consumption taxes; cross-border pollution; non-cooperative and cooperative equilibrium;

Find related papers by JEL classification:

References

References listed on IDEAS
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.:
as in new window
  1. Emran, M. Shahe & Stiglitz, Joseph E., 2005. "On selective indirect tax reform in developing countries," Journal of Public Economics, Elsevier, Elsevier, vol. 89(4), pages 599-623, April.
  2. Harvey E. Lapan & Shiva Sikdar, 2011. "Strategic Environmental Policy under Free Trade with Transboundary Pollution," Review of Development Economics, Wiley Blackwell, Wiley Blackwell, vol. 15(1), pages 1-18, 02.
  3. Michael S. Michael & Panos Hatzipanayotou, 2012. "Pollution and Reforms of Domestic and Trade Taxes towards Uniformity," University of Cyprus Working Papers in Economics, University of Cyprus Department of Economics 11-2012, University of Cyprus Department of Economics.
  4. Diamond, Peter A & Mirrlees, James A, 1971. "Optimal Taxation and Public Production: I--Production Efficiency," American Economic Review, American Economic Association, American Economic Association, vol. 61(1), pages 8-27, March.
  5. A. Bovenberg, 1994. "Destination- and origin-based taxation under international capital mobility," International Tax and Public Finance, Springer, Springer, vol. 1(3), pages 247-273, October.
  6. John Beghin & David Roland-Holst & Dominique van der Mensbrugghe, 1994. "Trade and Pollution Linkages: Piecemeal Reform and Optimal Intervention," OECD Development Centre Working Papers 99, OECD Publishing.
  7. Keen, Michael & Ligthart, Jenny E., 2002. "Coordinating tariff reduction and domestic tax reform," Journal of International Economics, Elsevier, Elsevier, vol. 56(2), pages 489-507, March.
  8. Arja H. Turunen-Red & Alan D. Woodland, 2004. "Multilateral Reforms of Trade and Environmental Policy," Review of International Economics, Wiley Blackwell, Wiley Blackwell, vol. 12(3), pages 321-336, 08.
  9. Robin Boadway & Motohiro Sato, 2009. "Optimal Tax Design and Enforcement with an Informal Sector," American Economic Journal: Economic Policy, American Economic Association, American Economic Association, vol. 1(1), pages 1-27, February.
  10. Copeland Brian R., 1994. "International Trade and the Environment: Policy Reform in a Polluted Small Open Economy," Journal of Environmental Economics and Management, Elsevier, vol. 26(1), pages 44-65, January.
  11. Michael, Michael S. & Hatzipanayotou, Panos & Miller, Stephen M., 1993. "Integrated reforms of tariffs and consumption taxes," Journal of Public Economics, Elsevier, Elsevier, vol. 52(3), pages 417-428, October.
  12. Albrecht, Johan, 2006. "The use of consumption taxes to re-launch green tax reforms," International Review of Law and Economics, Elsevier, Elsevier, vol. 26(1), pages 88-103, March.
  13. Atkinson, A. B. & Stiglitz, J. E., 1976. "The design of tax structure: Direct versus indirect taxation," Journal of Public Economics, Elsevier, Elsevier, vol. 6(1-2), pages 55-75.
  14. Werner Antweiler & Brian R. Copeland & M. Scott Taylor, 2001. "Is Free Trade Good for the Environment?," American Economic Review, American Economic Association, American Economic Association, vol. 91(4), pages 877-908, September.
  15. Helmuth Cremer & Firouz Gahvari, 2005. "Environmental Taxation in Open Economies: Unilateralism or Partial Harmonization," Southern Economic Journal, Southern Economic Association, Southern Economic Association, vol. 72(2), pages 352–371, October.
  16. Sajal Lahiri & Anjum Nasim, 2005. "Commercial Policy Reform in Pakistan: Opening up the Economy under Revenue Constraints," International Tax and Public Finance, Springer, Springer, vol. 12(6), pages 723-739, November.
  17. Panos Hatzipanayotou & Sajal Lahiri & Michael S. Michael, 2005. "Reforms of Environmental Policies in the Presence of Cross-border Pollution and Public-Private Clean-up," Scandinavian Journal of Economics, Wiley Blackwell, Wiley Blackwell, vol. 107(2), pages 315-333, 06.
  18. Georgakopoulos, T & Hitiris, T, 1992. "On the Superiority of the Destination over the Origin Principle of Taxation for Intra-union Trade," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 102(410), pages 117-26, January.
Full references (including those not matched with items on IDEAS)

Citations

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:ces:ceswps:_4501. 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: (Julio Saavedra).

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.