Böhringer, Christoph; Rivers, Nicholas; Yonezawa, Hidemichi - Institut für Volkswirtschaftslehre, Carl von Ossietzky … - 2014
We show that imposition of a state-level environmental tax in a federation crowds out preexisting federal taxes. We explain how this vertical fiscal externality can lead unilateral statelevel environmental policy to generate a welfare gain in the implementing state, at the expense of other...