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A Framework to Compare Environmental Policies

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  • Don Fullerton

Abstract

This paper builds a single model that can be used to show efficiency and distributional effects of eight different types of environmental policies (including taxes, subsidies, regulations, permits, and legal liability). All eight approaches can be designed to have the same efficiency effects, even while they have different distributional effects. For further evaluation of these policies, the paper discusses other criteria outside the simple model (including administrative efficiency, enforcement capabilities, and political feasibility). The paper ends with a discussion of likely trade-offs among these often-competing objectives of environmental policy.

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Bibliographic Info

Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 8420.

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Date of creation: Aug 2001
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Publication status: published as Fullerton, Don. "A Framework To Compare Environmental Policies," Southern Economic Journal, 2001, v68(2,Oct), 224-238.
Handle: RePEc:nbr:nberwo:8420

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Cited by:
  1. Stef Proost & Denise Van Regemorter, 2004. "Climate Change Policy in European Countries and its effects on industry," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 9(4), pages 453-473, October.
  2. Scott Farrow, 2009. "Incorporating Equity in Regulatory and Benefit-Cost Analysis Using Risk Based Preferences," UMBC Economics Department Working Papers 09-117, UMBC Department of Economics.
  3. Baomin Dong & Jiong Gong & Xin Zhao, 2012. "FDI and environmental regulation: pollution haven or a race to the top?," Journal of Regulatory Economics, Springer, vol. 41(2), pages 216-237, April.
  4. McCann, Laura & Colby, Bonnie & Easter, K. William & Kasterine, Alexander & Kuperan, K.V., 2005. "Transaction cost measurement for evaluating environmental policies," Ecological Economics, Elsevier, vol. 52(4), pages 527-542, March.
  5. Mettepenningen, Evy & Beckmann, Volker & Eggers, Jorg, 2008. "Public transaction cost of agri-environmental schemes and its determinants - Analysing stakeholders’ involvement and perceptions," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44321, European Association of Agricultural Economists.
  6. Francisco J. André & Paula González & Nicolás Porteiro, 2007. "Strategic Quality Competition and the Porter Hypothesis," Working Papers 07.03, Universidad Pablo de Olavide, Department of Economics.
  7. Ossama Mikhail & J. Walter Milon & Richard Hofler, 2005. "Is Investment in Environmental Quality a Solution to Recessions? Studying the Welfare Effects of Green Animal Spirits," Others 0510010, EconWPA.
  8. Don Fullerton & Andrew Leicester & Stephen Smith, 2008. "Environmental Taxes," NBER Working Papers 14197, National Bureau of Economic Research, Inc.
  9. David Tobón Orozco & Carlos Andrés Vasco Correa, 2011. "Un modelo de equilibrio general con externalidades y capital natural," Libros del Grupo Microeconomía Aplicada, Universidad de Antioquia, Departamento de Economía, edition 1, number 01, December.
  10. Don Fullerton, 2009. "Does Environmental Protection Hurt Low-Income Families?," CESifo Forum, Ifo Institute for Economic Research at the University of Munich, vol. 10(1), pages 45-49, 04.
  11. Cristina Ciocirlan & Bruce Yandle, 2003. "The Political Economy of Green Taxation in OECD Countries," European Journal of Law and Economics, Springer, vol. 15(3), pages 203-218, May.

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