Product Quality and Environmental Taxation
In developed countries, car use is one of the most significant contributors to air pollution. It is also a notable fact that larger, heavier cars consume more fuel and hence contribute more to pollution. This observation has led to policy proposals to structure taxation to encourage the use of smaller, lighter cars. A model of vertical product differentiation shows that there are, however, reasons why the standard policy response may be flawed and that it may even be optimal to subsidise large cars at the expense of small ones. © The London School of Economics and the University of Bath 2002
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
When requesting a correction, please mention this item's handle: RePEc:tpe:jtecpo:v:36:y:2002:i:2:p:233-266. 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: (Christopher F. Baum)
If references are entirely missing, you can add them using this form.