Environmental Taxation and Redistribution Concerns
How is the optimal level of Pigouvian taxation influenced by distributive concerns? With second-best instruments, a higher level of income redistribution calls for a lower level of Pigouvian taxation. More redistribution implies higher distortions from income taxation. Pigouvian tax revenues become more valuable, and the optimal level of environmental taxation decreases. With first-best instruments, however, the relation between levels of redistribution and Pigouvian taxation is reversed. So second-best Pigouvian taxes are very different from their first-best counterpart --- despite apparently identical first-order conditions.
Volume (Year): 70 (2014)
Issue (Month): 2 (June)
|Contact details of provider:|| Web page: https://www.mohr.de/fa|
|Order Information:|| Postal: Mohr Siebeck GmbH & Co. KG, P.O.Box 2040, 72010 Tübingen, Germany|
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.:
- Craig Brett & John A. Weymark, 2004.
"Public Good Provision and the Comparative Statics of Optimal Nonlinear Income Taxation,"
Vanderbilt University Department of Economics Working Papers
0415, Vanderbilt University Department of Economics.
- Craig Brett & John A. Weymark, 2008. "Public Good Provision And The Comparative Statics Of Optimal Nonlinear Income Taxation," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 49(1), pages 255-290, 02.
- Guesnerie,Roger, 1998. "A Contribution to the Pure Theory of Taxation," Cambridge Books, Cambridge University Press, number 9780521629560, December.
- Bovenberg, A.L. & de Mooij, R.A., 1994.
"Environmental levies and distortionary taxation,"
Other publications TiSEM
4b32deaa-ec2f-4de7-b59b-9, Tilburg University, School of Economics and Management.
- Bas Jacobs & Ruud A. de Mooij, 2011.
"Pigou Meets Mirrlees: On the Irrelevance of Tax Distortions for the Second-Best Pigouvian Tax,"
CESifo Working Paper Series
3342, CESifo Group Munich.
- Jacobs, Bas & de Mooij, Ruud A., 2015. "Pigou meets Mirrlees: On the irrelevance of tax distortions for the second-best Pigouvian tax," Journal of Environmental Economics and Management, Elsevier, vol. 71(C), pages 90-108.
- A. Bovenberg, 1999. "Green Tax Reforms and the Double Dividend: an Updated Reader's Guide," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 6(3), pages 421-443, August.
- Metcalf, Gilbert E., 1999. "A Distributional Analysis of Green Tax Reforms," National Tax Journal, National Tax Association, vol. 52(4), pages 655-682, December.
- Cremer, Helmuth & Gahvari, Firouz & Ladoux, Norbert, 1998. "Externalities and optimal taxation," Journal of Public Economics, Elsevier, vol. 70(3), pages 343-364, December.
- Sebastian Rausch & Gilbert E. Metcalf & John M. Reilly, 2011.
"Distributional Impacts of Carbon Pricing: A General Equilibrium Approach with Micro-Data for Households,"
NBER Working Papers
17087, National Bureau of Economic Research, Inc.
- Rausch, Sebastian & Metcalf, Gilbert E. & Reilly, John M., 2011. "Distributional impacts of carbon pricing: A general equilibrium approach with micro-data for households," Energy Economics, Elsevier, vol. 33(S1), pages 20-33.
- Pierre C. Boyer & Felix J. Bierbrauer, 2014.
"The Pareto-Frontier in a Simple Mirrleesian Model of Income Taxation,"
Annals of Economics and Statistics,
GENES, issue 113-114, pages 185-206.
- Felix Bierbrauer & Pierre C. Boyer, 2013. "The Pareto-Frontier in a Simple Mirrleesian Model of Income Taxation," CESifo Working Paper Series 4399, CESifo Group Munich.
- Felix Bierbrauer & Pierre C. Boyer, 2010. "The Pareto-Frontier in a simple Mirrleesian model of income taxation," Working Paper Series of the Max Planck Institute for Research on Collective Goods 2010_16, Max Planck Institute for Research on Collective Goods.
- Sarah E. West, 2005. "Equity Implications of Vehicle Emissions Taxes," Journal of Transport Economics and Policy, University of Bath, vol. 39(1), pages 1-24, January.
- Bev Dahlby, 2008. "The Marginal Cost of Public Funds: Theory and Applications," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262042509.
- Stéphane Gauthier & Guy Laroque, 2008.
"Separability and Public Finance,"
2008-24, Centre de Recherche en Economie et Statistique.
- Rafael Aigner, 2011.
"Environmental Taxation and Redistribution Concerns,"
Working Paper Series of the Max Planck Institute for Research on Collective Goods
2011_17, Max Planck Institute for Research on Collective Goods, revised Jun 2013.
- Rafael Aigner, 2014. "Environmental Taxation and Redistribution Concerns," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 70(2), pages 249-277, June.
- Aigner, Rafael, 2013. "Environmental Taxation and Redistribution Concerns," Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79859, Verein für Socialpolitik / German Economic Association.
- Peter J. Hammond, 1979. "Straightforward Individual Incentive Compatibility in Large Economies," Review of Economic Studies, Oxford University Press, vol. 46(2), pages 263-282.
- Lawrence Goulder, 1995. "Environmental taxation and the double dividend: A reader's guide," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 2(2), pages 157-183, August.
- repec:ntj:journl:v:52:y:1999:i:n._4:p:655-82 is not listed on IDEAS
- Kopczuk, Wojciech, 2003. "A note on optimal taxation in the presence of externalities," Economics Letters, Elsevier, vol. 80(1), pages 81-86, July.
- Atkinson, A. B. & Stiglitz, J. E., 1976. "The design of tax structure: Direct versus indirect taxation," Journal of Public Economics, Elsevier, vol. 6(1-2), pages 55-75.
When requesting a correction, please mention this item's handle: RePEc:mhr:finarc:urn:sici:0015-2218(201406)70:2_249:etarc_2.0.tx_2-o. 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: (Thomas Wolpert)
If references are entirely missing, you can add them using this form.