Performance of the ambient tax: does the nature of the damage matter?
AbstractThe ambient tax is often considered as an effcient instrument to achieve a rst best outcome of ambient pollution when the regulator is less informed than the polluters. Since the ambient tax was never imple- mented in the eld, empirical evidence is missing. Available experimental ndings provide mixed evidence: effciency is higher under external dam- age, i.e. if ambient pollution affects non-polluters (Spraggon, 2002, 2003) than under internal damage, i.e. if ambient pollution a¤ects polluters themselves (Cochard et al., 2005). Since these two types of experiments relied on very different designs, it is worthwhile to compare them under a common experimental design. Our main nding is that the ambient tax is equally effcient under external damage than under internal damage.
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Bibliographic InfoPaper provided by LAMETA, Universtiy of Montpellier in its series Working Papers with number 11-25.
Length: 27 pages
Date of creation: Dec 2011
Date of revision: Dec 2011
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This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-12-19 (All new papers)
- NEP-ENV-2011-12-19 (Environmental Economics)
- NEP-EXP-2011-12-19 (Experimental Economics)
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