The Pigouvian Tax Rule in the Presence of an Eco-Industry
Pollution abatement goods and services are now largely being delivered by a specialized "eco-industry". This note reconsiders Pigouvian taxes in this context. We find that the optimal emission tax will depart from the marginal social cost of pollution according to the polluters' and the environment firms' relative market power.
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Volume (Year): 33 (2013)
Issue (Month): 1 ()
Pages: 747-752
| Handle: | RePEc:ebl:ecbull:eb-12-00864 |
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References listed on IDEAS
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- Farzin, Y H & Kort, P M, 2000.
" Pollution Abatement Investment When Environmental Regulation Is Uncertain,"
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- Stephen Smith, 1992. "Taxation and the environment: a survey," Fiscal Studies, Institute for Fiscal Studies, vol. 13(4), pages 21-57, January.
- Ngo Van Long & Antoine Soubeyran, 1998. "Pollution, Pigouvian Taxes, and Asymmetric International Oligopoly," CIRANO Working Papers 98s-30, CIRANO. Full references (including those not matched with items on IDEAS)
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