The Optimal Number of Polluters and Victims and the Inadequacy of Pigouvian Taxes
AbstractThe paper analyzes in a general equilibrium model the local and global pollution externality problems in which one firm pollutes and another firm in another industry suffer from pollution. Assuming that polluters and victims are located near each other (otherwise there is no local pollution problem) in identical cities, it is shown that there is in the local case always a corner solution with respect to the number of polluters, victims or both in a city, whereas in the global case, an interior solution always exits. The optimal pollution control instrument is a two-part Pigouvian tax-emissions rights scheme in which the firm pays emission taxes only for those emissions which exceed its emission rights.
Download InfoTo 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 InfoPaper provided by Department of Economics in its series University of Helsinki, Department of Economics with number 468.
Length: 24 pages
Date of creation: 1999
Date of revision:
Contact details of provider:
Postal: University of Helsinki; Department of Economics, P.O.Box 54 (Unioninkatu 37) FIN-00014 Helsingin Yliopisto
Phone: +358 9 191 8897
Fax: +358 9 191 8877
Web page: http://www.helsinki.fi/politiikkajatalous/
More information through EDIRC
EXTERNALITIES ; TAXATION ; REGIONAL DEVELOPMENT;
Find related papers by JEL classification:
- H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
- R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies
- Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral 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: (Thomas Krichel).
If references are entirely missing, you can add them using this form.