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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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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


Published Online: 2005-04-12


Citation Information: Frontiers in Economic Analysis & Policy. Volume 1, Issue 1, ISSN (Online) 1538-0629, DOI: https://doi.org/10.2202/1538-0629.1363, April 2005

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[1]
Susanne Soretz
Environmental and Resource Economics, 2007, Volume 36, Number 1, Page 57

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