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Efficient introduction of Pigovian taxes

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  • Franz Wirl

Abstract

This paper considers the dynamics of introducing pollution taxes when firms have to invest into abatement facilities. This accumulation of abatement capital, however, proceeds sluggishly. Therefore, actual policy proposals of pollution taxes consider a phased introduction. This paper considers the normative aspects of such a policy. More precisely, it proves that pollution taxes should be introduced radically rather than gradually. Copyright Kluwer Academic Publishers 1994

Suggested Citation

  • Franz Wirl, 1994. "Efficient introduction of Pigovian taxes," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 4(6), pages 535-544, December.
  • Handle: RePEc:kap:enreec:v:4:y:1994:i:6:p:535-544
    DOI: 10.1007/BF00693044
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    References listed on IDEAS

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    1. Ko, Il-Dong & Lapan, Harvey E. & Sandler, Todd, 1992. "Controlling stock externalities : Flexible versus inflexible Pigovian corrections," European Economic Review, Elsevier, vol. 36(6), pages 1263-1276, August.
    2. Pindyck, Robert S., 1982. "The optimal phasing of phased deregulation," Journal of Economic Dynamics and Control, Elsevier, vol. 4(1), pages 281-294, November.
    3. Wirl, Franz, 1991. "Phasing of Deregulation: Normative versus Positive Objectives," Journal of Regulatory Economics, Springer, vol. 3(1), pages 89-106, March.
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