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Environmental Goods and the Distribution of Income

  • Udo Ebert

    ()

The paper presents a (theoretical) investigation of the distributional impacts of environmental commodities. It introduces an appropriate framework, defines concepts for measuring benefits and examines the determinants of benefit incidence within this setup. Its emphasis is on methodology and on recognizing the relevant economic variables and information. It turns out that in an “equal-preference” model the magnitude of the income elasticity of marginal willingness to pay for an environmental good is the crucial variable determining progressivity. It is related to a number of other elasticities which are more easily accessible to an empirical estimation. Copyright Kluwer Academic Publishers 2003

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File URL: http://hdl.handle.net/10.1023/A:1025052225929
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Article provided by European Association of Environmental and Resource Economists in its journal Environmental and Resource Economics.

Volume (Year): 25 (2003)
Issue (Month): 4 (August)
Pages: 435-459

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Handle: RePEc:kap:enreec:v:25:y:2003:i:4:p:435-459
Contact details of provider: Web page: http://www.springerlink.com/link.asp?id=100263

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  1. Carson, Richard & Flores, Nicholas E. & Hanemann, W. Michael, 1998. "Sequencing and Valuing Public Goods," Journal of Environmental Economics and Management, Elsevier, vol. 36(3), pages 314-323, November.
  2. Neary, J. P. & Roberts, K. W. S., 1980. "The theory of household behaviour under rationing," European Economic Review, Elsevier, vol. 13(1), pages 25-42, January.
  3. Stina Hökby & Tore Söderqvist, 2003. "Elasticities of Demand and Willingness to Pay for Environmental Services in Sweden," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 26(3), pages 361-383, November.
  4. Freeman III, A. Myrick, 1985. "Methods for assessing the benefits of environmental programs," Handbook of Natural Resource and Energy Economics, in: A. V. Kneese† & J. L. Sweeney (ed.), Handbook of Natural Resource and Energy Economics, edition 1, volume 1, chapter 6, pages 223-270 Elsevier.
  5. repec:cup:cbooks:9780521322249 is not listed on IDEAS
  6. Ebert, Udo, 1997. "Selecting Preferences for Nonmarket Goods: Possibilities and Limitations," Public Finance = Finances publiques, , vol. 52(3-4), pages 301-17.
  7. Flores, Nicholas E. & Carson, Richard T., 1997. "The Relationship between the Income Elasticities of Demand and Willingness to Pay," Journal of Environmental Economics and Management, Elsevier, vol. 33(3), pages 287-295, July.
  8. Maital, Shlomo, 1973. "Public Goods and Income Distribution: Some Further Results," Econometrica, Econometric Society, vol. 41(3), pages 561-68, May.
  9. Kovenock, Daniel & Sadka, Efraim, 1981. "Progression under the benefit approach to the theory of taxation," Economics Letters, Elsevier, vol. 8(1), pages 95-99.
  10. repec:cup:cbooks:9780521311120 is not listed on IDEAS
  11. Aaron, Henry & McGuire, Martin, 1970. "Public Goods and Income Distribution," Econometrica, Econometric Society, vol. 38(6), pages 907-20, November.
  12. W. E. Diewert, 1974. "A Note on Aggregation and Elasticities of Substitution," Canadian Journal of Economics, Canadian Economics Association, vol. 7(1), pages 12-20, February.
  13. Hanemann, W Michael, 1991. "Willingness to Pay and Willingness to Accept: How Much Can They Differ?," American Economic Review, American Economic Association, vol. 81(3), pages 635-47, June.
  14. Udo Ebert, 1998. "Evaluation of Nonmarket Goods: Recovering Unconditional Preferences," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(2), pages 241-254.
  15. Snow, Arthur & Warren, Ronald Jr., 1983. "Tax progression in Lindahl equilibrium," Economics Letters, Elsevier, vol. 12(3-4), pages 319-326.
  16. Bengt Kristrom & Pere Riera, 1996. "Is the income elasticity of environmental improvements less than one?," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 7(1), pages 45-55, January.
  17. Borcherding, Thomas E & Deacon, Robert T, 1972. "The Demand for the Services of Non-Federal Governments," American Economic Review, American Economic Association, vol. 62(5), pages 891-901, December.
  18. repec:cup:cbooks:9780521348102 is not listed on IDEAS
  19. Ebert, Udo & Lambert, Peter J, 1999. "Combined Income Taxes and Tax-Benefit Systems," The Economic Record, The Economic Society of Australia, vol. 75(231), pages 397-404, December.
  20. Brennan, Geoffrey, 1976. "The Distributional Implications of Public Goods," Econometrica, Econometric Society, vol. 44(2), pages 391-99, March.
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