Tax competition leading to strict environmental policy
Cees Withagen and
International Tax and Public Finance, 2013, vol. 20, issue 3, 434-449
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)
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Working Paper: Tax Competition Leading to Strict Environmental Policy (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:kap:itaxpf:v:20:y:2013:i:3:p:434-449
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