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Environmental Policy and Optimal Taxation in a Decentralized Economic Federation

Bibliographic Data

ID24064196
AuthorsThomas Aronsson (Umeå University), Thomas Jønsson (0000-0002-9161-4459, Umeå University), Tomas Sjögren (0000-0003-4145-7894, Umeå University)
Year2006
Volume62
Issue3
Pages437-454
Publication date2006-01-01
Peer ReviewedYes
Open AccessNo
TypeARTICLE
VenueFinanzArchiv (JOURNAL)
Journal identifiersISSN: 0015-2218 • E-ISSN: 1614-0974
PublisherMohr Siebeck (PUBLISHER)
DOI10.1628/001522106x153464
OpenAlexW2065403399
LanguageEN
Citations received2
References cited4

This paper deals with environmental policy in an economic federation, where each national (lower level) government faces a mixed tax problem. We assume that the federal government sets emission targets, which are implemented at the national level. We also assume that the economic federation is decentralized, meaning that the national governments are first movers vis-à-vis the federal government. Our results show that each country uses its policy instruments, at least in part, to influence the emission target. This has several implications: first, the commodity taxes do not satisfy the so-called additivity property often emphasized in earlier literature, and, second, it provides an argument for using distortionary labor income taxation.

Economics · Environmental policy · Natural resource economics · Public economics · Climate Change Policy and Economics · Corporate Taxation and Avoidance · Fiscal Policy and Economic Growth

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Unique citing works2
Citations per year0,13
Citation span2011 - 2014 (4)
Citation velocityhistorical
Highly citedNo
Citation typesNeutral: 2
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