Optimal taxation in the presence of a congested public good and an application to transport policy
In this paper we demonstrate that even if policies prior to reform have been rational, it is possible, in fact in certain policy areas likely, that a green tax reform, contrary to the perceived wisdom among economists, will be associated with a double-dividend, i.e. with both environmental and fiscal benefits. We first establish this theoretically by avoiding imposing potentially unrealistic separability assumptions, and by recognising that taxation involves administrative costs. To illustrate our theoretical results, we use graphical tools well-known from fishery economics to assess the effects of the introduction of a tax on road transport.
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- Knud Munk, .
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Regional and Urban Modeling
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- repec:cup:cbooks:9780521681599 is not listed on IDEAS
- repec:cup:cbooks:9780521715348 is not listed on IDEAS
- repec:cup:cbooks:9780521887427 is not listed on IDEAS
- Dixit, A. K. & Munk, K. J., 1977. "Welfare effects of tax and price changes : A correction," Journal of Public Economics, Elsevier, vol. 8(1), pages 103-107, August.
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