Earmarking of Environmental Taxes: Efficient, After All
The paper analyses the benefits of earmarking the environmental tax revenues in a second-best world with asymmetry of information between government and taxpayers. Taxpayers are assumed to have taste differences over consumption of an environmentally harmful activity. The government, which cannot observe these preferences, pursues Pareto-efficient taxation involving compensation to the potential losers of tax policy. Within this framework, it is shown that earmarking environmental tax revenues on projects that are beneficial to the losers of the environmental policy may alleviate problems concerning asymmetric information and facilitate more efficient environmental policy.
|Date of creation:||13 Apr 1998|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://www.suomenpankki.fi/en/
More information through EDIRC
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.:
- P. A. Diamond, 1975.
"A Many-Person Ramsey Tax Rule,"
146, Massachusetts Institute of Technology (MIT), Department of Economics.
- King, Mervyn A., 1986. "A pigovian rule for the optimum provision of public goods," Journal of Public Economics, Elsevier, vol. 30(3), pages 273-291, August.
- Brett, Craig & Keen, Michael, 2000. "Political uncertainty and the earmarking of environmental taxes," Journal of Public Economics, Elsevier, vol. 75(3), pages 315-340, March.
- Boadway, Robin & Keen, Michael, 1993.
"Public Goods, Self-Selection and Optimal Income Taxation,"
International Economic Review,
Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 34(3), pages 463-78, August.
- Robin Boadway & Michael Keen, 1991. "Public Goods, Self-Selection and Optimal Income Taxation," Working Papers 828, Queen's University, Department of Economics.
- Blomquist, Sören & Christiansen, Vidar, 1997.
"Price Subsidies versus Public Provision,"
Working Paper Series
1997:12, Uppsala University, Department of Economics.
- James M. Buchanan, 1963. "The Economics of Earmarked Taxes," Journal of Political Economy, University of Chicago Press, vol. 71, pages 457.
When requesting a correction, please mention this item's handle: RePEc:hhs:bofrdp:1998_004. 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: (Minna Nyman)
If references are entirely missing, you can add them using this form.