The paper provides an intuitive explanation - seen from an efficiency point of view - of the optimal commodity tax structure as the result of a trade-off between two objectives: 1) the objective of maintaining the first-best pattern of consumption of produced commodities, and 2) the objective of...

The paper extends the standard second best theory of optimal taxation to take into account the existence of differences in administrative costs associated with different tax-transfer systems providing a more realistic framework for the analysis of the trade-offs between equity and efficiency...

The view of economists seems in general to be that a green tax reform is unlikely to be associated with a "double dividend", especially if the policies prior to the reform have been economically rational. However, the results derived in the present paper suggest that this view needs to be...

The paper provides an intuitive explanation – seen from an efficiency point of view – of the optimal commodity tax structure as the result of a trade-off between two objectives: 1) the objective of maintaining the first-best pattern of consumption of produced commodities, and 2) the...