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A Framework to Compare Environmental Policies

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Don Fullerton

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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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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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Handle: RePEc:nbr:nberwo:8420

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Find related papers by JEL classification:
H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies

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  1. 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. [Downloadable!] (restricted)
  2. 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. [Downloadable!] (restricted)
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  3. 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. [Downloadable!]
  4. Mettepenningen, E. & Beckmann, V. & Eggers, J., 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. [Downloadable!]
  5. 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. [Downloadable!]
  6. Don Fullerton & Andrew Leicester & Stephen Smith, 2008. "Environmental Taxes," NBER Working Papers 14197, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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