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This study develops a theoretical general equilibrium model to examine optimal externality tax policy in the presence of externalities linked to one another through markets rather than technical production relationships. Analytical results reveal that the second-best externality tax rate may be...
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pollution regulation. However, these studies have made restrictive assumptions regarding individual preferences and have ignored … key links between pollution, human health, and labor productivity. Together, these assumptions imply that the benefits of … that when the benefits of reduced pollution come in the form of improved health or productivity, the benefits do affect …
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finding, arguing that the health benefits from reduced pollution will also interact with pre-existing taxes, possibly causing … considers health effects. It shows that interactions with health effects from pollution actually will tend to reduce the optimal …
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