Seung-Rae, Kim - In: The B.E. Journal of Economic Analysis & Policy 1 (2002) 1, pp. 1-27
Recent studies find that environmental taxes typically exacerbate pre-existing tax distortions and, therefore, the optimal pollution tax should lie below the Pigouvian level (social marginal damages). This paper analyzes a general equilibrium model with non-separable preferences and technology,...