imported by consumers of a high-tax region and exported by its producers. Conditions for the existence of a Nash equilibrium … are given and an asymmetry is introduced through different preferences for public goods. Two tax coordination measures are … discussed, a minimum tax rate and a coordinated increase in the costs of cross-border shopping. It is shown that tax …

) favours environmental policy instruments which - yielding the same improvement in environmental quality - maximise its tax … revenues. Additional revenues can be used to reduce the distortion of the rest of the tax system. Without uncertainty …