Ballard, Charles; Goddeeris, John; Kim, Sang-Kyum - In: International Tax and Public Finance 12 (2005) 2, pp. 115-130
We show that, if the utility function is non-homothetic, environmental taxes can have positive non-environmental effects. These effects are illustrated with specific reference to taxes on gasoline and tobacco, in the context of a computational model. We also clarify the relationship between the...