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Ex Post Evaluation of an Earmarked Tax on Air Pollution

Author

Listed:
  • Katrin Millock

    (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)

  • Céline Nauges

    (LERNA - Economie des Ressources Naturelles - UT Capitole - Université Toulouse Capitole - UT - Université de Toulouse - INRA - Institut National de la Recherche Agronomique - CEA - Commissariat à l'énergie atomique et aux énergies alternatives)

Abstract

In this paper we do an ex post evaluation of the French tax on air pollution. The revenues of this tax were redistributed to polluters in the form of subsidies to abatement technologies, and the policy is a typical example of an earmarked tax. We use a two-stage estimation procedure on an unbalanced panel data set of 226 plants from three industrial sectors that are some of the main contributors to nitrogen oxide and sulfur dioxide emissions. The results indicate that the overall environmental effectiveness of this particular tax/subsidy scheme can be questioned.

Suggested Citation

  • Katrin Millock & Céline Nauges, 2006. "Ex Post Evaluation of an Earmarked Tax on Air Pollution," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-00109559, HAL.
    • Handle: RePEc:hal:cesptp:hal-00109559
    DOI: 10.3368/le.82.1.68
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    References listed on IDEAS

    as
    1. Winston Harrington & Richard D. Morgenstern & Peter Nelson, 2000. "On the accuracy of regulatory cost estimates," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 19(2), pages 297-322.
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    More about this item

    Keywords

    ex post evaluation; economic instruments; earmarked tax; environmental policy; tax-subsidy system; air pollution;
    All these keywords.

    JEL classification:

    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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