EconPapers    
Economics at your fingertips  
 

Environmental Taxation and Redistribution Concerns

Rafael Aigner

FinanzArchiv: Public Finance Analysis, 2014, vol. 70, issue 2, 249-277

Abstract: How is the optimal level of Pigouvian taxation influenced by distributive concerns? With second-best instruments, a higher level of income redistribution calls for a lower level of Pigouvian taxation. More redistribution implies higher distortions from income taxation. Pigouvian tax revenues become more valuable, and the optimal level of environmental taxation decreases. With first-best instruments, however, the relation between levels of redistribution and Pigouvian taxation is reversed. So second-best Pigouvian taxes are very different from their first-best counterpart - despite apparently identical first-order conditions.

Keywords: Pigouvian taxation; comparative statics; externalities; optimal income taxation; second best (search for similar items in EconPapers)
JEL-codes: D62 H21 H23 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5) Track citations by RSS feed

Downloads: (external link)
https://www.mohrsiebeck.com/en/article/environment ... 1628001522114x681379 (text/html)
Fulltext access is included for subscribers to the printed version.

Related works:
Working Paper: Environmental Taxation and Redistribution Concerns (2013) Downloads
Working Paper: Environmental Taxation and Redistribution Concerns (2013) 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:mhr:finarc:urn:sici:0015-2218(201406)70:2_249:etarc_2.0.tx_2-o

Ordering information: This journal article can be ordered from
Mohr Siebeck GmbH & Co. KG, P.O.Box 2040, 72010 Tübingen, Germany

DOI: 10.1628/001522108X681379

Access Statistics for this article

FinanzArchiv: Public Finance Analysis is currently edited by Alfons Weichenrieder, Ronnie Schöb and Jean-François Tremblay

More articles in FinanzArchiv: Public Finance Analysis from Mohr Siebeck, Tübingen
Bibliographic data for series maintained by Thomas Wolpert ().

 
Page updated 2022-04-27
Handle: RePEc:mhr:finarc:urn:sici:0015-2218(201406)70:2_249:etarc_2.0.tx_2-o