Data/hora: 01/06/2024 13:37:48

Provedor de dados: | 31
País: | United States
Título: | Is There a Rationale for Rebating Environmental Levies?
Autores: | Bernard,   Alain; Fischer,   Carolyn; Vielle,   Marc.
Data: | 2005-10-26
Ano: | 2001
Palavras-chave: | Environmental levy; Tax rebate; Fiscal distortions; Environmental Economics and Policy; Q2; Q43; H2; D61.
Resumo: | Political pressure often exists for rebating environmental levies, particularly when incomplete regulatory coverage allegedly creates an“"unlevel playing field" with other, unregulated firms or industries. This paper assesses the conditions under which rebating environmental levies is justified for the regulated sector. It combines a theoretical approach based on second-best modeling with numerical simulations aimed at determining the most sensitive parameters. We find that if an adequate tax on production can be levied in the unregulated sector, no rebate is justified for the regulated sector. Moreover, even in the case of constrained taxation in the unregulated sector, a tax rebate or a subsidy in the regulated sector is not necessarily a welfare-increasing policy. The exception occurs when the goods of the competing sectors are close substitutes. We find that these kinds of policy constraints can be quite costly in terms of welfare.
Tipo: | Working or Discussion Paper
Idioma: | Inglês

Identificador:

18564

http://purl.umn.edu/10512

Editor: | AgEcon Search

Relação:

Resources for the Future&gt;Discussion Papers

Discussion Paper 01-31

Formato:

36

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