Header

UZH-Logo

Maintenance Infos

The choice between emission taxes and output taxes under imperfect monitoring


Goulder, Lawrence; Schmutzler, Armin (1997). The choice between emission taxes and output taxes under imperfect monitoring. Journal of Environmental Economics and Management, 32(1):51-74.

Abstract

We consider a regulator's choice between environmentally motivated emissions taxes and output taxes. We investigate how the optimal instrument depends on the monitoring cost function, the firm's technology, and on social preferences regarding output and environmental quality. Pure emissions taxes are usually not optimal with monitoring costs. Pure output taxes are optimal under sufficiently high monitoring costs, sufficiently limited options for emission reduction by means other than output reduction, and sufficiently high substitutability of the output. Finally, conditions for the optimality of mixed taxes are given.

Abstract

We consider a regulator's choice between environmentally motivated emissions taxes and output taxes. We investigate how the optimal instrument depends on the monitoring cost function, the firm's technology, and on social preferences regarding output and environmental quality. Pure emissions taxes are usually not optimal with monitoring costs. Pure output taxes are optimal under sufficiently high monitoring costs, sufficiently limited options for emission reduction by means other than output reduction, and sufficiently high substitutability of the output. Finally, conditions for the optimality of mixed taxes are given.

Statistics

Citations

34 citations in Web of Science®
39 citations in Scopus®
Google Scholar™

Altmetrics

Downloads

1 download since deposited on 15 Feb 2012
0 downloads since 12 months
Detailed statistics

Additional indexing

Item Type:Journal Article, refereed, original work
Communities & Collections:03 Faculty of Economics > Department of Economics
Dewey Decimal Classification:330 Economics
Date:January 1997
Deposited On:15 Feb 2012 11:26
Last Modified:07 Dec 2017 12:40
Publisher:Elsevier
Publisher DOI:https://doi.org/10.1006/jeem.1996.0953
Other Identification Number:merlin-id:6146

Download