Income Tax, Commodity Tax and Environmental Policy

Jukka Pirttilä and Matti Tuomala

International Tax and Public Finance, 1997, vol. 4, issue 3, No 10, 379-393

Abstract: Abstract Using the self-selection approach to tax analysis, the paper analyses the impact of environmental externalities on Pareto-efficient non-linear income tax, proportional commodity taxes and public expenditure. Consideration of externalities within this framework reveals intuitive insights into environmental tax policy, suggesting that some earlier conclusions drawn in the relevant literature might be misleading. The results indicate that, while the externality’s direct harmful impact raises marginal tax rates, the influence through the self-selection constraint tends to decrease the rise. We also derive conditions under which the Pigovian tax can be determined purely on the basis of internalizing the externality.

Keywords: Pareto-efficient taxation; Public goods; Environmental externalities; Non-linear income taxation (search for similar items in EconPapers)
Date: 1997
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

Downloads: (external link)
http://link.springer.com/10.1023/A:1008624623340 Abstract (text/html)
Access to full text is restricted to subscribers.

Related works:
Journal Article: Income Tax, Commodity Tax and Environmental Policy (1997)
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:kap:itaxpf:v:4:y:1997:i:3:d:10.1023_a:1008624623340

Ordering information: This journal article can be ordered from
http://www.springer. ... ce/journal/10797/PS2

DOI: 10.1023/A:1008624623340

Access Statistics for this article

International Tax and Public Finance is currently edited by Ronald B. Davies and Kimberly Scharf

More articles in International Tax and Public Finance from Springer, International Institute of Public Finance Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().