In this paper, we reexamine the optimal tax problem with identical consumers in the presence of externalities by taking … the presence of externalities, it is standard to follow Sandmo (1975) to employ the following assumptions: (i) separable … externalities; and (ii) independent demands. We dispense with these restrictive assumptions and show the Sandmo’s “additivity …

theory. Environmental issues must go through the filter of economic analysis, and policies have to be evaluated based on the …

that do not bear the costs of externalities, in this chapter we have presented the clear case of exploitation of natural … the non-inclusion problem of negative externalities in the calculation of economic efficiency. Analogous to this example … social costs of externalities as "the costs of nature", and they are structured so that they make the sum of losses of the …