This paper provides a theoretical and empirical analysis of how environmental charges affect a particular sector of the economy. Our approach allows a simple comparison of how partial and “general” equilibrium results may differ. Copyright Kluwer Academic Publishers 1993

Various environmental measures, including both regulations and fiscal instruments, have been used at airports globally to reduce the impacts of aircraft noise as well as aircraft engine emissions. Internationally, it is recognized that the costs of environmental and social externalities of air...

Summary In economies with perfect competition, environmental tax rates should be set equal to the equilibrium marginal damage. There are two basic reasons to depart from this first best rule: incomplete competition and the possibility of using environmental policy as a strategic trade instrument...