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Climate change economics mostly neglects sizeable interactions of carbon pricing with other fiscal policy instruments. Conversely, public finance typically overlooks the effects of future decarbonization efforts when devising instruments for the major goals of fiscal policy. We argue that such a...
Persistent link: https://www.econbiz.de/10011307275
policies redistribute wealth between consumers and producers, and within these groups. While redistribution is seldom the focus … the redistribution effects of two major electricity policies: support schemes for renewable energy sources, and CO2 … pricing. We find that the redistribution effects of both policies are large, and they work in opposed directions: while …
Persistent link: https://www.econbiz.de/10010294320
In this paper, we assume that redistribution modifies the community structure of an economy and generates both intra … growth dynamics. We find multiple politico-economic regimes where the pressure for redistribution is highly non …-linear depending on social affinity. In some range of inequality, the ends may oppose high rates of redistribution against the middle …
Persistent link: https://www.econbiz.de/10011608803
redistribution of income occurs. Finally, a consumption tax hike accompanied by a compensatory reduction of public debt increases …
Persistent link: https://www.econbiz.de/10011608841
progressivity. Economic theory suggests that higher progressivity could reduce unemployment. Suppose that wages are bargained over … that, when labor markets are not perfectly competitive, a certain degree of tax progressivity can be desirable because it … tax wages do not fully offset these changes;c) higher tax progressivity increases pretax wages;d) there are significant …
Persistent link: https://www.econbiz.de/10011335701
This paper evaluates the effects of the lack of regulatory commitment on emission tax applied by the regulator, abatement effort made by the monopoly and social welfare comparing two alternative policy games. The first game assumes that the regulator commits to an ex-ante level of the emission...
Persistent link: https://www.econbiz.de/10011586850
This paper examines the double dividend hypothesis under wage uncertainty. In the presence of two market failures we show that second-best requires a lower than the Pigouvian tax, and a higher than "first-best" labour income tax. Starting from a state in which the environmental tax is below...
Persistent link: https://www.econbiz.de/10011608315
We compare the instantaneous and the long run effects of environmental reform in closed and open economies. Harmonization upward (decreasing distortions where they are most severe) or harmonization downward (increasing distortions where they are less severe), both tend to increase instantaneous...
Persistent link: https://www.econbiz.de/10011608329
International environmental agreements are increasingly important in a globalised economy. Beyond their specific interest, these agreements are also important in the context of coalition formation theory. Given the incentives to free ride, associated to the environment as a public good and to...
Persistent link: https://www.econbiz.de/10011608368
This paper re-examines the optimal tax design problem (income and commodities) in the presence of externalities. The nature of the second-best, and the choice of the tax instruments, are motivated by the informational structure in the economy. The main results are: (i) environmental levies...
Persistent link: https://www.econbiz.de/10011608387