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Could environmental public policy be harmful for the environment ?

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  • Mouez Fodha

    (Centre d’économie de la Sorbonne - University of Paris I, Paris school of Economics, Maisons des sciences économiques)

Abstract

This article analyzes the consequences of environmental public policy when private agents have access to abatement activity, financed by private contributions. The issue at stake is the interactions between private involvement in abatement activities and public intervention. The analysis of the consequences of environmental tax policy on capital and environmental quality shows that public and private abatements may or may not be substitutable, depending on abatement efficiencies and on initial economic and environmental inefficiencies.

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Bibliographic Info

Paper provided by Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES) in its series Discussion Papers (REL - Recherches Economiques de Louvain) with number 2010042.

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Length: 19
Date of creation: 01 Dec 2010
Date of revision:
Handle: RePEc:ctl:louvre:2010042

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Keywords: Environmental externalities; abatement; tax policy;

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  1. John, A. & Pecchenino, R. & Schimmelpfennig, D. & Schreft, S., 1995. "Short-lived agents and the long-lived environment," Journal of Public Economics, Elsevier, vol. 58(1), pages 127-141, September.
  2. Bovenberg, A Lans & van der Ploeg, Frederick, 1992. "Environmental Policy, Public Finance and the Labour Market in a Second-best World," CEPR Discussion Papers 745, C.E.P.R. Discussion Papers.
  3. Smulders, J.A. & Gradus, R.H.J.M., 1993. "The trade-off between environmental care and long-term growth: Pollution in three proto-type growth models," Open Access publications from Tilburg University urn:nbn:nl:ui:12-153405, Tilburg University.
  4. Ono, Tetsuo, 1996. "Optimal tax schemes and the environmental externality," Economics Letters, Elsevier, vol. 53(3), pages 283-289, December.
  5. Philippe Michel & Gilles Rotillon, 1995. "Disutility of pollution and endogenous growth," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 6(3), pages 279-300, October.
  6. Jouvet, P.-A. & Michel, P. & Vidal, J.-P., 1999. "Intergenerational Altruism and the Environment," G.R.E.Q.A.M. 99a03, Universite Aix-Marseille III.
  7. Bergstrom, Theodore & Blume, Lawrence & Varian, Hal, 1986. "On the private provision of public goods," Journal of Public Economics, Elsevier, vol. 29(1), pages 25-49, February.
  8. Marini Giancarlo & Scaramozzino Pasquale, 1995. "Overlapping Generations and Environmental Control," Journal of Environmental Economics and Management, Elsevier, vol. 29(1), pages 64-77, July.
  9. John, A & Pecchenino, R, 1994. "An Overlapping Generations Model of Growth and the Environment," Economic Journal, Royal Economic Society, vol. 104(427), pages 1393-1410, November.
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