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Maintenance environnementale et politique fiscale optimale dans un modèle à générations imbriquées

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  • Mouez Fodha

Abstract

This article analyses instruments which are available to the government to correct environmental externalities. We assume that only the government has access to environmental maintenance activity, which is financed by levying taxes. The competitive equilibrium is therefore not optimal because the economy faces (i) a problem of public good supply, i.e. the maintenance activity, (ii) a pollution externality from private consumption, (iii) the selfishness of the short lived agents. We determine the optimal fiscal structure that allows the competitive equilibrium and the optimum to coincide. To determine the optimal level of environmental maintenance, we use the Samuelson rule, modified to take into account the relevant social rate of discount that incorporates the natural rate of depletion. We show that the considered optimal maintenance activity should not only neutralize the flow of emissions of pollutants but also increases the environmental quality. Otherwise, in the long run, the environmental amenities would disappear.

Suggested Citation

  • Mouez Fodha, 2005. "Maintenance environnementale et politique fiscale optimale dans un modèle à générations imbriquées," Recherches économiques de Louvain, De Boeck Université, vol. 71(4), pages 413-425.
  • Handle: RePEc:cai:reldbu:rel_714_0413
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    References listed on IDEAS

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    1. Bovenberg, A. L. & van der Ploeg, F., 1994. "Environmental policy, public finance and the labour market in a second-best world," Journal of Public Economics, Elsevier, vol. 55(3), pages 349-390, November.
    2. John, A & Pecchenino, R, 1994. "An Overlapping Generations Model of Growth and the Environment," Economic Journal, Royal Economic Society, vol. 104(427), pages 1393-1410, November.
    3. Marini Giancarlo & Scaramozzino Pasquale, 1995. "Overlapping Generations and Environmental Control," Journal of Environmental Economics and Management, Elsevier, vol. 29(1), pages 64-77, July.
    4. John, A. & Pecchenino, R. & Schimmelpfennig, D. & Schreft, S., 1995. "Short-lived agents and the long-lived environment," Journal of Public Economics, Elsevier, vol. 58(1), pages 127-141, September.
    5. Jouvet, Pierre-Andre & Michel, Philippe & Vidal, Jean-Pierre, 2000. " Intergenerational Altruism and the Environment," Scandinavian Journal of Economics, Wiley Blackwell, vol. 102(1), pages 135-150, March.
    6. Ono, Tetsuo, 1996. "Optimal tax schemes and the environmental externality," Economics Letters, Elsevier, vol. 53(3), pages 283-289, December.
    7. Philippe Michel & Gilles Rotillon, 1995. "Disutility of pollution and endogenous growth," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 6(3), pages 279-300, October.
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    More about this item

    JEL classification:

    • D60 - Microeconomics - - Welfare Economics - - - General
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies

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