Efficiency and Equity of an Outdoor Recreation Equipment Tax to Fund Public Lands

Margaret Walls and Matthew Ashenfarb

Land Economics, 2022, vol. 98, issue 3, 520-536

Abstract: We analyze the efficiency and equity implications of a federal excise tax on outdoor recreation equipment for funding U.S. public lands. Using microdata on consumer expenditure, we estimate a two-stage quadratic almost ideal demand system for recreation equipment and simulate the effects of a 5% tax. The tax generates a modest welfare loss as a share of tax revenues raised: $0.04 for every $1 of revenue. It is approximately proportional to income across the entire income distribution, but households in the lowest-income quintile pay more as a share of income than do households in the other four income quintiles.

JEL-codes: H21 H41 (search for similar items in EconPapers)
Date: 2022
Note: DOI: 10.3368/le.98.3.090821-0108
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Working Paper: Efficiency and Equity of an Outdoor Recreation Equipment Tax to Fund Public Lands (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:uwp:landec:v:98:y:2022:i:3:p:520-536

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