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Efficiency-distributional trade-offs in the taxation of environmental pollution

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  • Keith Willett

Abstract

Internalizing the externality costs from environmental pollution with a tax has received a great deal of attention and discussion in environmental economics literature. The primary motivation for setting the size of the tax rate is usually driven by economic efficiency considerations, but distributive consequences may play an important role in the decision of whether to adopt a tax. This paper shows how these trade-offs can be addressed when environmental pollution is internalized with a tax. Copyright International Atlantic Economic Society 2000

Suggested Citation

  • Keith Willett, 2000. "Efficiency-distributional trade-offs in the taxation of environmental pollution," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 28(2), pages 226-238, June.
  • Handle: RePEc:kap:atlecj:v:28:y:2000:i:2:p:226-238
    DOI: 10.1007/BF02298363
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    1. Buchanan, James M & Tullock, Gordon, 1975. "Polluters' Profits and Political Response: Direct Controls Versus Taxes," American Economic Review, American Economic Association, vol. 65(1), pages 139-147, March.
    2. Alexander H. Sarris & John Freebairn, 1983. "Endogenous Price Policies and International Wheat Prices," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 65(2), pages 214-224.
    3. Baumol,William J. & Oates,Wallace E., 1988. "The Theory of Environmental Policy," Cambridge Books, Cambridge University Press, number 9780521322249, October.
    4. Cropper, Maureen L & Oates, Wallace E, 1992. "Environmental Economics: A Survey," Journal of Economic Literature, American Economic Association, vol. 30(2), pages 675-740, June.
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