Environmental costs of residuals: a characterization of efficient tax policies
AbstractDurable goods leave residuals after being retired from use. If the environmental costs of the residuals are external to consumers and producers of the good, then overproduction and excess residuals will result. Ad valorem taxes are show to be ineffective in eliminating this externality. The efficient regulatory policy is shown to be based on a pigouvian tax.
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Bibliographic InfoPaper provided by Universidad Carlos III de Madrid in its series Open Access publications from Universidad Carlos III de Madrid with number info:hdl:10016/10951.
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Externalities; Pollution control; Optimal taxation; Durable goods; Residuals;
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- Joan Pasqual Rocabert, 2005. "Nuevos instrumentos de política ambiental," Working Papers wpdea0510, Department of Applied Economics at Universitat Autonoma of Barcelona.
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