EconPapers    
Economics at your fingertips  
 

The role of information provision as a policy instrument to supplement environmental taxes: Empowering consumers to choose optimally

Eftichios Sartzetakis (esartz@uom.edu.gr), Anastasios Xepapadeas and Emmanuel Petrakis

Discussion Paper Series from Department of Economics, University of Macedonia

Abstract: The present paper examines, within a dynamic framework, the use of information provision as a policy instrument to supplement environmental taxation. We assume that at least a fraction of consumers do not posses the required information to make the optimal choices, and that their behavior at each time period depends on the accumulated stock of information. We show that, as the accumulated stock of information provision increases, both the optimal level of information provided at each period of time and the optimal tax rate decline over time. Our results provide strong evidence in support of information campaigns as a policy instrument to supplement traditional environmental policies. Information provision can sift the demand towards environmentally friendly products over time and thus, reduce the required level of the tax rate.

Keywords: information provision; enviromental taxation (search for similar items in EconPapers)
JEL-codes: D62 D82 Q53 Q58 (search for similar items in EconPapers)
Date: 2009-01, Revised 2009-01
New Economics Papers: this item is included in nep-env
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://aphrodite.uom.gr/econwp/pdf/wp0902.pdf
Our link check indicates that this URL is bad, the error code is: 500 Can't connect to aphrodite.uom.gr:80 (A connection attempt failed because the connected party did not properly respond after a period of time, or established connection failed because connected host has failed to respond.)

Related works:
Working Paper: The role of information provision as a policy instrument to supplement environmental taxes: Empowering consumers to choose optimally (2010) Downloads
Working Paper: The Role of Information Provision as a Policy Instrument to Supplement Environmental Taxes: Empowering Consumers to Choose Optimally (2009) Downloads
Working Paper: The Role of Information Provision as a Policy Instrument to Supplement Environmental Taxes: Empowering Consumers to Choose Optimally (2009) Downloads
Working Paper: The role of information provision as a policy instrument to supplement environmental taxes: Empowering consumers to choose optimally (2008) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:mcd:mcddps:2009_02

Access Statistics for this paper

More papers in Discussion Paper Series from Department of Economics, University of Macedonia
Bibliographic data for series maintained by Theodore Panagiotidis (tpanag@uom.edu.gr) and Anastasia Litina (anastasia.litina@uom.edu.gr).

 
Page updated 2024-12-28
Handle: RePEc:mcd:mcddps:2009_02