IDEAS home Printed from https://ideas.repec.org/a/kap/enreec/v28y2004i4p395-408.html
   My bibliography  Save this article

Optimal Environmental Charges/Taxes: Easy to Estimate and Surplus-yielding

Author

Listed:
  • Yew-Kwang Ng

Abstract

The estimation of the optimal charges/taxes on environmental disruption and the financing of the spending on the abatement of environmental disruption are important practical problems. This paper shows that, for most cases where some abatement is desirable, both the estimation and the financing problems may be easily solved. It is desirable to charge disruption (at least) at the marginal cost of abatement (which is easier to estimate than the marginal damage of disruption) and such a charge will normally yield total revenue in excess of the amount of abatement spending. Copyright Kluwer Academic Publishers 2004

Suggested Citation

  • Yew-Kwang Ng, 2004. "Optimal Environmental Charges/Taxes: Easy to Estimate and Surplus-yielding," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 28(4), pages 395-408, August.
    • Handle: RePEc:kap:enreec:v:28:y:2004:i:4:p:395-408
    DOI: 10.1023/B:EARE.0000036770.21797.16
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1023/B:EARE.0000036770.21797.16
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1023/B:EARE.0000036770.21797.16?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Stefan Felder & Reto Schleiniger, 1995. "Domestic Environmental Policy and International Factor Mobility: A General Equilibrium Analysis," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 131(III), pages 547-558, September.
    2. A. Lans Bovenberg & Frederick van der Ploeg, 2002. "Environmental Policy, Public Finance and the Labour Market in a Second-Best World," Chapters, in: Lawrence H. Goulder (ed.), Environmental Policy Making in Economies with Prior Tax Distortions, chapter 6, pages 112-153, Edward Elgar Publishing.
    3. Ng, Yew-Kwang, 1984. "Quasi-Pareto Social Improvements," American Economic Review, American Economic Association, vol. 74(5), pages 1033-1050, December.
    4. Jesse Schwartz & Robert Repetto, 2000. "Nonseparable Utility and the Double Dividend Debate: Reconsidering the Tax-Interaction Effect," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 15(2), pages 149-157, February.
    5. Bosello, Francesco & Carraro, Carlo & Galeotti, Marzio, 2001. "The double dividend issue: modeling strategies and empirical findings," Environment and Development Economics, Cambridge University Press, vol. 6(1), pages 9-45, February.
    6. Ian W.H. Parry & Wallace E. Oates & Ian W.H. Parry & Wallace E. Oates, 2004. "Policy Analysis in the Presence of Distorting Taxes," Chapters, in: Environmental Policy and Fiscal Federalism, chapter 4, pages 67-77, Edward Elgar Publishing.
    7. Salvatore Bimonte, 1999. "An Algorithm for Optimal Pigouvian Taxes Without Benefits Data," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 13(1), pages 1-11, January.
    8. Ian W.H. Parry & Antonio M. Bento, 2002. "Tax Deductions, Environmental Policy, and the "Double Dividend" Hypothesis," Chapters, in: Lawrence H. Goulder (ed.), Environmental Policy Making in Economies with Prior Tax Distortions, chapter 22, pages 397-426, Edward Elgar Publishing.
    9. Yew-Kwang Ng & Po-Ting Liu, 2003. "Global environmental protection: solving the international public-goods problem by empowering the United Nations through cooperation with WTO," International Journal of Global Environmental Issues, Inderscience Enterprises Ltd, vol. 3(4), pages 409-417.
    10. Goodstein, Eban, 2002. "Labor supply and the double-dividend," Ecological Economics, Elsevier, vol. 42(1-2), pages 101-106, August.
    11. Bosquet, Benoit, 2000. "Environmental tax reform: does it work? A survey of the empirical evidence," Ecological Economics, Elsevier, vol. 34(1), pages 19-32, July.
    12. Yew-Kwang Ng, 2003. "From preference to happiness: Towards a more complete welfare economics," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 20(2), pages 307-350, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Yan, Eric & Feng, Qu & Ng, Yew-Kwang, 2021. "Do we need ramsey taxation? Our existing taxes are largely corrective," Economic Modelling, Elsevier, vol. 94(C), pages 526-538.
    2. Ng, Yew-Kwang, 2007. "Eternal Coase and external costs: A case for bilateral taxation and amenity rights," European Journal of Political Economy, Elsevier, vol. 23(3), pages 641-659, September.
    3. Yew-Kwang Ng, 2010. "The Taxation of External Costs," Chapters, in: Mark Blaug & Peter Lloyd (ed.), Famous Figures and Diagrams in Economics, chapter 15, Edward Elgar Publishing.
    4. Rousseau, Sandra & Telle, Kjetil, 2010. "On the existence of the optimal fine for environmental crime," International Review of Law and Economics, Elsevier, vol. 30(4), pages 329-337, December.
    5. Yew‐Kwang Ng, 2008. "Happiness Studies: Ways to Improve Comparability and Some Public Policy Implications," The Economic Record, The Economic Society of Australia, vol. 84(265), pages 253-266, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Orlov, Anton & Grethe, Harald & McDonald, Scott, 2013. "Carbon taxation in Russia: Prospects for a double dividend and improved energy efficiency," Energy Economics, Elsevier, vol. 37(C), pages 128-140.
    2. Chung-Fu Lai, 2016. "Examining the Double Dividend Effect of Energy Tax with the Overlapping Generations Model," International Journal of Energy Economics and Policy, Econjournals, vol. 6(1), pages 53-57.
    3. Ronnie Schöb, 2003. "The Double Dividend Hypothesis of Environmental Taxes: A Survey," CESifo Working Paper Series 946, CESifo.
    4. Jan Siegmeier & Linus Mattauch & Max Franks & David Klenert & Anselm Schultes & Ottmar Edenhofer, 2015. "A Public Finance Perspective on Climate Policy: Six Interactions That May Enhance Welfare," Working Papers 2015.31, Fondazione Eni Enrico Mattei.
    5. William Jaeger, 2011. "The Welfare Effects of Environmental Taxation," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 49(1), pages 101-119, May.
    6. Ng, Yew-Kwang, 2007. "Eternal Coase and external costs: A case for bilateral taxation and amenity rights," European Journal of Political Economy, Elsevier, vol. 23(3), pages 641-659, September.
    7. Franziska Klein & Jeroen van den Bergh, 2021. "The employment double dividend of environmental tax reforms: exploring the role of agent behaviour and social interaction," Journal of Environmental Economics and Policy, Taylor & Francis Journals, vol. 10(2), pages 189-213, April.
    8. Richard S.J. Tol, 2018. "Energy and Climate," Working Paper Series 1618, Department of Economics, University of Sussex Business School.
    9. Chiroleu-Assouline, Mireille & Fodha, Mouez, 2006. "Double dividend hypothesis, golden rule and welfare distribution," Journal of Environmental Economics and Management, Elsevier, vol. 51(3), pages 323-335, May.
    10. Yew‐Kwang Ng, 2008. "Happiness Studies: Ways to Improve Comparability and Some Public Policy Implications," The Economic Record, The Economic Society of Australia, vol. 84(265), pages 253-266, June.
    11. A. Bovenberg, 1999. "Green Tax Reforms and the Double Dividend: an Updated Reader's Guide," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 6(3), pages 421-443, August.
    12. Grant Allan & Peter McGregor & Kim Swales & Karen Turner, 2007. "The UK Climate Change Levy and the Potential for Double-Dividend Effects under Different Labour Market Specifications: a Computable General Equilibrium Analysis for the United Kingdom," Energy and Environmental Modeling 2007 24000001, EcoMod.
    13. Bovenberg, A. Lans & Goulder, Lawrence H. & Jacobsen, Mark R., 2008. "Costs of alternative environmental policy instruments in the presence of industry compensation requirements," Journal of Public Economics, Elsevier, vol. 92(5-6), pages 1236-1253, June.
    14. Jean-Christophe Caffet, 2005. "Health effects and optimal environmental taxes in welfare state countries," Cahiers de la Maison des Sciences Economiques v05049, Université Panthéon-Sorbonne (Paris 1).
    15. Ian W. H. Parry & Kenneth A. Small, 2005. "Does Britain or the United States Have the Right Gasoline Tax?," American Economic Review, American Economic Association, vol. 95(4), pages 1276-1289, September.
    16. Xavier Labandeira & José M. Labeaga & Xiral López-Otero, 2019. "New Green Tax Reforms: Ex-Ante Assessments for Spain," Sustainability, MDPI, vol. 11(20), pages 1-25, October.
    17. West, Sara E. & Parry, Ian W.H., 2009. "Alcohol-Leisure Complementarity: Empirical Estimates and Implications for Tax Policy," National Tax Journal, National Tax Association;National Tax Journal, vol. 62(4), pages 611-633, December.
    18. Ng, Yew-Kwang, 2018. "Ten rules for public economic policy," Economic Analysis and Policy, Elsevier, vol. 58(C), pages 32-42.
    19. Jacobs, Bas & de Mooij, Ruud A., 2015. "Pigou meets Mirrlees: On the irrelevance of tax distortions for the second-best Pigouvian tax," Journal of Environmental Economics and Management, Elsevier, vol. 71(C), pages 90-108.
    20. Alberto Gago & Xavier Labandeira & Xiral López Otero, 2014. "A Panorama on Energy Taxes and Green Tax Reforms," Hacienda Pública Española / Review of Public Economics, IEF, vol. 208(1), pages 145-190, March.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:enreec:v:28:y:2004:i:4:p:395-408. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.