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Could environmental public policy be harmful for the environment ?

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  • Mouez Fodha

    (Centre d’économie de la Sorbonne - University of Paris I, Paris school of Economics, Maisons des sciences économiques)

Abstract

This article analyzes the consequences of environmental public policy when private agents have access to abatement activity, financed by private contributions. The issue at stake is the interactions between private involvement in abatement activities and public intervention. The analysis of the consequences of environmental tax policy on capital and environmental quality shows that public and private abatements may or may not be substitutable, depending on abatement efficiencies and on initial economic and environmental inefficiencies.

Suggested Citation

  • Mouez Fodha, 2010. "Could environmental public policy be harmful for the environment ?," Discussion Papers (REL - Recherches Economiques de Louvain) 2010042, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    • Handle: RePEc:ctl:louvre:2010042
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    References listed on IDEAS

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    1. 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.
    2. John, A & Pecchenino, R, 1994. "An Overlapping Generations Model of Growth and the Environment," Economic Journal, Royal Economic Society, vol. 104(427), pages 1393-1410, November.
    3. John, A. & Pecchenino, R. & Schimmelpfennig, D. & Schreft, S., 1995. "Short-lived agents and the long-lived environment," Journal of Public Economics, Elsevier, vol. 58(1), pages 127-141, September.
    4. Bergstrom, Theodore & Blume, Lawrence & Varian, Hal, 1986. "On the private provision of public goods," Journal of Public Economics, Elsevier, vol. 29(1), pages 25-49, February.
    5. Smulders, J.A. & Gradus, R.H.J.M., 1993. "The trade-off between environmental care and long-term growth : Pollution in three proto-type growth models," Other publications TiSEM f3ec6de7-f996-4ac0-b872-0, Tilburg University, School of Economics and Management.
    6. Marini Giancarlo & Scaramozzino Pasquale, 1995. "Overlapping Generations and Environmental Control," Journal of Environmental Economics and Management, Elsevier, vol. 29(1), pages 64-77, July.
    7. Ono, Tetsuo, 1996. "Optimal tax schemes and the environmental externality," Economics Letters, Elsevier, vol. 53(3), pages 283-289, December.
    8. repec:bla:scandj:v:102:y:2000:i:1:p:135-50 is not listed on IDEAS
    9. Philippe Michel & Gilles Rotillon, 1995. "Disutility of pollution and endogenous growth," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 6(3), pages 279-300, October.
    10. Raymond Gradus & Sjak Smulders, 1993. "The trade-off between environmental care and long-term growth—Pollution in three prototype growth models," Journal of Economics, Springer, vol. 58(1), pages 25-51, February.
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    Cited by:

    1. Alberto Ansuategi & Simone Marsiglio, 2017. "Is Environmental Protection Beneficial for the Environment?," Review of Development Economics, Wiley Blackwell, vol. 21(3), pages 786-802, August.

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    More about this item

    Keywords

    Environmental externalities; abatement; tax policy;
    All these keywords.

    JEL classification:

    • Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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