Recently, it became customary to argue that environmental quality - like ordinary public consumption - is crowded out by distortionary taxation. We show that this hypothesis does not hold provided that the marginal revenue of the environmental tax is positive. In this case, under-provision of public goods implies over-provision of environmental quality in second best. Hence, contrary to the impression left by the recent literature, distortionary taxes may actually provide more room for environmental protection than lump-sum taxes.
Download Info
To our knowledge, this item is not available for
download. To find whether it is available, there are three
options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page
whether it is in fact available.
3. Perform a search for a similarly titled item that would be
available.
Publisher Info
Paper provided by University of Bonn, Germany in its series Discussion Paper Serie A with number
579.
Length: pages Date of creation: Aug 1998 Date of revision: Handle: RePEc:bon:bonsfa:579
Contact details of provider: Postal: Bonn Graduate School of Economics, University of Bonn, Adenauerallee 24 - 26, 53113 Bonn, Germany Fax: +49 228 73 9221 Web page: http://www.bgse.uni-bonn.de/index.php?id=517
For technical questions regarding this item, or to correct its listing, contact: (Daniel Park).
Find related papers by JEL classification: H41 - Public Economics - - Publicly Provided Goods - - - Public Goods H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
Cited by: (explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)