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In this paper, we take up the question why a group of sovereign countries is willing to form a federation even if residents of the high-income region suspect potential immigrants to be net beneficiaries of the tax and transfer system. We argue that income uncertainty alone cannot satisfactorily...
Persistent link: https://www.econbiz.de/10010296313
In actual environmental policy, the design of actual pollution emission taxes differs significantly with the optimal Pigovian tax. In particular, earmarking prevails and actual taxes are usually combined with regulation. Furthermore tax rates are generally too low to significantly influence...
Persistent link: https://www.econbiz.de/10011335760
-identical producers within the same industry, lobbying for tighter environmental rules turns out to be an important strategy of raising …-industrial competition engage in counter-lobbying and when they remain silent. …
Persistent link: https://www.econbiz.de/10010397882
We analyze the determinants of environmental policy when two firms engage in two types of lobbying against a … restriction on allowed pollution: General lobbying increases the total amount of allowed pollution, which is beneficial for both … firms. Private lobbying increases the individual pollution standard of the lobbying firm, but has a negative or zero effect …
Persistent link: https://www.econbiz.de/10010315572
We consider a simple dynamic model of environmental taxation that exhibits time inconsistency. There are two categories of firms, Believers, who take the tax announcements made by the Regulator to face value, and Non-Believers, who perfectly anticipate the Regulator's decisions, albeit at a...
Persistent link: https://www.econbiz.de/10011325007
Environmental policy affects the distribution of market shares if intermediate goods are differentiated in pollution intensity. When innovations are environmental friendly, a tax on emissions skews demand towards new goods, which are the most productive. In this case along a balanced growth path...
Persistent link: https://www.econbiz.de/10011335685
Policy makers and analysts are often faced with situations where it is unclear whether market-based instruments hold real promise of reducing costs, relative to conventional uniform standards. We develop analytic expressions that can be employed with modest amounts of information to estimate the...
Persistent link: https://www.econbiz.de/10011335717
Increased spatial dependency of economic activities, as well as spatial differentiation of production and consumption, has implication for environmental policy. One of the issues that has gained importance is the responsibility for the emissions from products that cross national boundaries...
Persistent link: https://www.econbiz.de/10010324759
The purpose of the paper is to narrow the gap between the widespread use of voluntary agreements and research on the rationale of such approaches. A typical example are voluntary agreements of many industries to reduce carbon dioxide emissions because of global warming. If the industry...
Persistent link: https://www.econbiz.de/10011608503
This paper introduces to the main policy research issues that the interrelationship between environmental and economic problems has recently emphasised. Economists have traditionally encouraged the use of incentive-based instruments in place of command and control regulation. The starting point...
Persistent link: https://www.econbiz.de/10011608588