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Three tax reforms with and without public pollution abatement

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  • Takumi Haibara

    (Aichi University)

Abstract

The literature has explored three strategies for reforming tariffs and consumption taxes: price-neutral tax reforms, revenue-neutral tax reforms, and consumption-neutral tax reforms. In the presence of private pollution abatement only, consumption-neutral tax reforms rank first in terms of welfare improvements. With the presence of both private and public pollution abatement, welfare-improving tariff protection reform packages occur. Unless income effects are zero, price-neutral tax reforms do not rank first regardless of the type of pollution abatement.

Suggested Citation

  • Takumi Haibara, 2023. "Three tax reforms with and without public pollution abatement," Economics Bulletin, AccessEcon, vol. 43(1), pages 574-582.
    • Handle: RePEc:ebl:ecbull:eb-22-00136
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    File URL: http://www.accessecon.com/Pubs/EB/2023/Volume43/EB-23-V43-I1-P47.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    price-neutral tax reforms; revenue-neutral tax reforms; consumption-neutral tax reforms; public pollution abatement;
    All these keywords.

    JEL classification:

    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • F1 - International Economics - - Trade

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