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The B.E. Journal of Economic Analysis & Policy

Editor-in-Chief: Jürges, Hendrik / Ludwig, Sandra

Ed. by Auriol , Emmanuelle / Brunner, Johann / Fleck, Robert / Mendola, Mariapia / Requate, Till / Schirle, Tammy / de Vries, Frans / Zulehner, Christine

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1935-1682
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Volume 1, Issue 1 (Apr 2005)

Issues

Volume 6 (2006)

Volume 4 (2004)

Volume 2 (2002)

Volume 1 (2001)

Second-Best Pollution Taxation and Environmental Quality

Thomas Gaube
  • 1Max Planck Institute for Research on Collective Goods,
Published Online: 2005-04-12 | DOI: https://doi.org/10.2202/1538-0629.1363

Abstract

This paper deals with second-best pollution taxation by investigating allocations instead of the corresponding tax rates. Assuming certain restrictions on utility and that the marginal revenue from environmental taxation is positive, it is shown that environmental quality is higher in second best where only distortionary taxes are used to finance public expenditures than in the first-best optimum where lump-sum taxes are available.

Keywords: environmental taxation; public goods

About the article

Published Online: 2005-04-12


Citation Information: Frontiers in Economic Analysis & Policy, ISSN (Online) 1538-0629, DOI: https://doi.org/10.2202/1538-0629.1363.

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