It is well known that an efficient pollution taxation scheme should charge each source according to its specific marginal contribution to social damages. Despite significant advances in environmental assessment, geographic information systems and data analysis, this requirement would impose...

Sedimentation in river beds, which results in social disamenities, is caused by soil erosion in farmed ecosystems surrounding those rivers. This paper introduces a "spatial"" corrective tax on soil erosion. We find that the optimal tax rule will depart from the classical Pigouvian method...