) and Goulder (1995). Goulder's primary concern is whether or not green tax reforms may increase welfare defined exclusive … labour supply as being the decisive factor for whether or not welfare exclusive of environmental quality rises under a green …

advantage) has recently become a widely discussed topic both in real-world economic policy and in economic theory. The subject … number of unsuitable assumptions which create doubt when questioning how appropriate the use of optimal taxation theory is …

decrease the welfare cost reported in earlier work. Our key assumption is that the environmental tax, such as a tax on gasoline … of the effect. For a 10% reduction in carbon dioxide emissions, the welfare cost of using a price instrument such as a … levels of pre-existing tax evasion may not be nearly so harmful to economic welfare as previously thought …