This paper studies the effect of an emission tax on the relocation decision in a duopoly with exogenous vertical … emissions in a two-country-setting for three cases: An environmental tax set only by one country, non-cooperative environmental … to the foreign country. A lower marginal damage decreases the equilibrium tax rate and lowers the incentive for …

green firm and a brown firm choose the environ- mental quality of their products. Both an emission tax and consumers … firm and the brown firm provide higher quality levels. Compared to first-best taxation, the equilibrium emission tax is …

focus on taxation and subsidies. In order to understand the quite complex literature on this subject, we draw on the theory … of the second best and the theory of optimal taxation. The thrust of the chapter is that there are multiple objectives … general-equilibrium effects, the revenue-recycling effect and the tax-interaction effect, are introduced in this section …

Computable general equilibrium (CGE) modeling is an attempt to use general equilibrium theory as a tool for analysis of … widespread use of CGE modeling probably is that a CGE model is an ideal bridge between economic theory and applied policy … research. The “bridge” perspective, however, suggests that CGE modeling is a way of using rather than testing economic theory …

avoid leakage from regulated to unregulated jurisdictions. This paper investigates the impact of a large electricity tax …