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Tax competition leading to strict environmental policy

Cees Withagen and Alex Halsema

International Tax and Public Finance, 2013, vol. 20, issue 3, 434-449

Abstract: We study tax competition when pollution matters. Most notably, we present a dynamic setting, where the supply of capital is endogenous. It is shown that tax competition may involve stricter environmental policy than the cooperative outcome. Copyright The Author(s) 2013

Keywords: Environmental policy; Race to the bottom; Pollution taxation; Q58; H23 (search for similar items in EconPapers)
Date: 2013
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Working Paper: Tax Competition Leading to Strict Environmental Policy (2012) Downloads
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