Althammer, Wilhelm; Buchholz, Wolfgang - In: Jahrbücher für Nationalökonomie und Statistik 219 (1999) 3-4, pp. 257-270
Summary In economies with perfect competition, environmental tax rates should be set equal to the equilibrium marginal damage. There are two basic reasons to depart from this first best rule: incomplete competition and the possibility of using environmental policy as a strategic trade instrument...