On the Optimal Taxation of Common-Pool Resources

George Kossioris, Michael Plexousakis, Anastasios Xepapadeas and Aart de Zeeuw

No 1010, DEOS Working Papers from Athens University of Economics and Business

Abstract: Recent research developments in common-pool resource models emphasize the importance of links with ecological systems and the presence of non-linearities, thresholds and multiple steady states. In a recent paper Kossioris et al. (2008) develop a methodology for deriving feedback Nash equilibria for non-linear di�¤erential games and apply this methodology to a common-pool resource model of a lake where pollution corresponds to bene��ts and at the same time a�¤ects the ecosystem services. This paper studies the structure of optimal state- dependent taxes that steer the combined economic-ecological system towards the trajectory of optimal management, and provides an algo- rithm for calculating such taxes.

Date: 2010
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Related works:
Journal Article: On the optimal taxation of common-pool resources (2011)
Working Paper: On the Optimal Taxation of Common-Pool Resources (2010)
Working Paper: On the Optimal Taxation of Common-Pool Resources (2010)
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