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A Framework to Compare Environmental Policies

  • Don Fullerton

This paper builds a single model that can be used to show efficiency and distributional effects of eight different types of environmental policies (including taxes, subsidies, regulations, permits, and legal liability). All eight approaches can be designed to have the same efficiency effects, even while they have different distributional effects. For further evaluation of these policies, the paper discusses other criteria outside the simple model (including administrative efficiency, enforcement capabilities, and political feasibility). The paper ends with a discussion of likely trade-offs among these often-competing objectives of environmental policy.

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File URL: http://www.nber.org/papers/w8420.pdf
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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 8420.

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Date of creation: Aug 2001
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Publication status: published as Fullerton, Don. "A Framework To Compare Environmental Policies," Southern Economic Journal, 2001, v68(2,Oct), 224-238.
Handle: RePEc:nbr:nberwo:8420
Note: PE EEE
Contact details of provider: Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.
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Web page: http://www.nber.org
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