The Pigouvian Tax Rule in the Presence of an Eco-Industry

Alain-Désiré Nimubona () and Bernard Sinclair-Desgagné

CIRANO Working Papers from CIRANO

Abstract: Pollution abatement goods and services are now largely being delivered by a specialized "eco-industry."" This note reconsiders Pigouvian taxes in this context. We find that the optimal emission tax will depart from the marginal social cost of pollution according to the polluters' and the environment firms' relative market power." La production des biens et services destinés à reduire la pollution incombe actuellement souvent à des firmes spécialisées qui forment ce que l'on appelle maintenant l'« éco-industrie ». Cette note reconsidère les taxes pigouviennes dans ce contexte. Il est démontré que la taxe optimale sur les émissions polluantes divergera du coût social marginal de la pollution selon les pouvoirs de marché relatifs des pollueurs et des entreprises environnementales.

Keywords: Pigouvian taxes; environment industry; taxes pigouviennes; industries de l'environnement (search for similar items in EconPapers)
JEL-codes: H23 L13 (search for similar items in EconPapers)
Date: 2005-04-01
New Economics Papers: this item is included in nep-acc, nep-env, nep-pbe, nep-pub and nep-res
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (23)

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Related works:
Journal Article: The Pigouvian Tax Rule in the Presence of an Eco-Industry (2013)
Working Paper: The Pigouvian Tax Rule in the Presence of an Eco-Industry (2005)
Working Paper: The Pigouvian Tax Rule in the Presence of an Eco-Industry (2005)
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Persistent link: https://EconPapers.repec.org/RePEc:cir:cirwor:2005s-21

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