Uniform and Non-Uniform Second-Best Input Taxes
We investigate second-best, input-based taxes foragricultural nonpoint pollution control when marketprices are endogenous and production isheterogeneous. Theoretically, we derive the optimalforms of taxes which take account of heterogeneity(non-uniform taxes) and a tax which does not (auniform tax). Empirically, we use a multi-factor,market-equilibrium simulation model to determineoptimal tax rates and associated equity effects,particularly differences in landowner gains/lossesacross a heterogeneous region. When market prices areendogenous, second-best tax policies result inpecuniary externalities that affect existingenvironmental externalities. In particular, thepecuniary externalities amplify the effect of producerheterogeneity on determination of sub-regionaldifferences in tax rates and returns to land,particularly for the uniform policy. With endogenousprices, the uniform tax rate is considerably higherthan any of the non-uniform rates and, ironically, thenon-uniform taxes result in less dispersion oflandowner gains across sub-regions than the uniformtax. Copyright Kluwer Academic Publishers 2001
Volume (Year): 19 (2001)
Issue (Month): 1 (May)
|Contact details of provider:|| Web page: http://www.springerlink.com/link.asp?id=100263|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- George C. Davis & Maria Cristina Espinoza, 1998. "A Unified Approach to Sensitivity Analysis in Equilibrium Displacement Models," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(4), pages 868-879.
- Binswanger, Hans P., 1973.
"The Measurement Of Technical Change Biases With Many Factors Of Production,"
14205, University of Minnesota, Department of Applied Economics.
- Binswanger, Hans P, 1974. "The Measurement of Technical Change Biases with Many Factors of Production," American Economic Review, American Economic Association, vol. 64(6), pages 964-76, December.
- Jeffrey M. Perloff, 1991.
"The Impact of Wage Differentials on Choosing to Work in Agriculture,"
American Journal of Agricultural Economics,
Agricultural and Applied Economics Association, vol. 73(3), pages 671-680.
- Perloff, Jeffrey M, 1990. "The impact of wage differentials on choosing to work in agriculture," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt68j399k8, Department of Agricultural & Resource Economics, UC Berkeley.
- Weinberg, Marca & Kling, Catherine L., 1996.
"Uncoordinated Agricultural and Environmental Policy-Making: An Application to Irrigated Agriculture in the West,"
Staff General Research Papers
1603, Iowa State University, Department of Economics.
- Marca Weinberg & Catherine L. Kling, 1996. "Uncoordinated Agricultural and Environmental Policy Making: An Application to Irrigated Agriculture in the West," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(1), pages 65-78.
- Fernandez-Cornejo, Jorge, 1992. "Short- And Long-Run Demand And Substitution Of Agricultural Inputs," Northeastern Journal of Agricultural and Resource Economics, Northeastern Agricultural and Resource Economics Association, vol. 21(1), April.
- Haley, Stephen L. & Krissoff, Barry, 1987. "U.S. Grain Exports and the Value of the Dollar," Journal of Agricultural Economics Research, United States Department of Agriculture, Economic Research Service, issue 2.
- Hrubovcak, James & LeBlanc, Michael & Miranowski, John, 1990. "Limitations in Evaluating Environmental and Agricultural Policy Coordination Benefits," American Economic Review, American Economic Association, vol. 80(2), pages 208-12, May.
- Abler, David G & Shortle, James S, 1992. "Environmental and Farm Commodity Policy Linkages in the U.S. and the EC," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 19(2), pages 197-217.
- Herriges, Joseph A. & Shogren, Jason F., 1992. "The Implicit Value of Corn Base Acreage," Staff General Research Papers 10788, Iowa State University, Department of Economics.
- Baumol,William J. & Oates,Wallace E., 1988. "The Theory of Environmental Policy," Cambridge Books, Cambridge University Press, number 9780521322249, October.
- Douglas M. Larson & Gloria E. Helfand & Brett W. House, 1996. "Second-Best Tax Policies to Reduce Nonpoint Source Pollution," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(4), pages 1108-1117.
- Baumol,William J. & Oates,Wallace E., 1988. "The Theory of Environmental Policy," Cambridge Books, Cambridge University Press, number 9780521311120, October.
- Holt, Matthew T., 1989. "Bounded price variation models with rational expectations and price risk," Economics Letters, Elsevier, vol. 31(4), pages 313-317, December.
- David L. Sunding, 1996. "Measuring the Marginal Cost of Nonuniform Environmental Regulations," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(4), pages 1098-1107.
- Patricia A. Duffy & C. Robert Taylor & Danny L. Cain & George J. Young, 1994. "The Economic Value of Farm Program Base," Land Economics, University of Wisconsin Press, vol. 70(3), pages 318-329.
- Miranowski, John & Tegene, Abebayehu & Huffman, Wallace, 1988. "Dynamic Corn Supply Functions: A Model with Explicit Optimization," Staff General Research Papers 10699, Iowa State University, Department of Economics.
- repec:cdl:agrebk:677080 is not listed on IDEAS
- Fleming, R. A. & Adams, R. M., 1997. "The Importance of Site-Specific Information in the Design of Policies to Control Pollution," Journal of Environmental Economics and Management, Elsevier, vol. 33(3), pages 347-358, July.
- Taylor, Michael L. & Adams, Richard M. & Miller, Stanley F., 1992. "Farm-Level Response To Agricultural Effluent Control Strategies: The Case Of The Willamette Valley," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 17(01), July.
- John E. Floyd, 1965. "The Effects of Farm Price Supports on the Returns to Land and Labor in Agriculture," Journal of Political Economy, University of Chicago Press, vol. 73, pages 148.
- Edward W. Tyrchniewicz & G. Edward Schuh, 1969. "Econometric Analysis of the Agricultural Labor Market," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 51(4), pages 770-787.
- James Shortle & David Abler & Richard Horan, 1998. "Research Issues in Nonpoint Pollution Control," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 11(3), pages 571-585, April.
- Lichtenberg, Erik & Zilberman, David, 1986. "The Welfare Economics of Price Supports in U.S. Agriculture," American Economic Review, American Economic Association, vol. 76(5), pages 1135-41, December.
When requesting a correction, please mention this item's handle: RePEc:kap:enreec:v:19:y:2001:i:1:p:1-22. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla)or (Christopher F. Baum)
If references are entirely missing, you can add them using this form.