Optimal Green Taxation With Both Emission and Commodity Taxes
AbstractSeveral authors have argued that the second-best environmental tax on a “dirty good” is less than marginal emission damage associated with its consumption. These studies limit their analysis to cases in which emissions can only be reduced by a reduction of the dirty good. With a more general specification that allows abatement through input substitution, we show that the direct emissions tax cannot be less than marginal emission damage, regardless of the normalization.
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Bibliographic InfoPaper provided by University of Hawaii at Manoa, Department of Economics in its series Working Papers with number 200208.
Length: 14 pages
Date of creation: 2002
Date of revision:
Other versions of this item:
- Pitafi, Basharat A.K. & Roumasset, James A., 2002. "Optimal Green Taxation with Both Emission and Commodity Taxes," 2002 Annual meeting, July 28-31, Long Beach, CA 19693, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
- D62 - Microeconomics - - Welfare Economics - - - Externalities
- H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
- H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
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