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Environmental taxation in an optimal tax framework

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  • Thomas Sadler

Abstract

An extended and descriptive optimal tax framework is used to identify the objectives of environmental taxation, analyze the portfolio problem, and explore the trade-offs of policy design. Optimal tax criteria include efficiency, equity, administration, compliance, and revenue. The portfolio problem means that the policy maker must compromise to accommodate trade-offs of competing policy objectives. The regulator may attempt to increase efficiency, maintain a fair distributional impact, minimize the costs of administration and compliance, and implement an efficient use of revenue. The best opportunity to enhance policy effectiveness lies in improving the trade-offs between policy objectives. Copyright International Atlantic Economic Society 2001

Suggested Citation

  • Thomas Sadler, 2001. "Environmental taxation in an optimal tax framework," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 29(2), pages 215-231, June.
  • Handle: RePEc:kap:atlecj:v:29:y:2001:i:2:p:215-231 DOI: 10.1007/BF02299139
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    References listed on IDEAS

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    Cited by:

    1. Athanasios Kampas & Richard Horan, 2016. "Second-best pollution taxes: revisited and revised," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 18(4), pages 577-597, October.

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