Pigouvian taxes are efficient -- but unpopular among voters -- and hence often politically infeasible. Earmarking of revenues has been widely reported to increase public support for taxes, but earmarking is generally not the most efficient use of the revenues. This trade-off between efficiency...

Environmental taxes might be efficient, but plans to impose new taxes are often met with fierce public resistance. In order to design environmental taxes that are both efficient and acceptable to the public -- so that they can be politically feasible -- it is important to understand public...