EconPapers    
Economics at your fingertips  
 

Border Tax Adjustments and Tariff-Tax Reforms with Consumption Pollution

Nikos Tsakiris, Panos Hatzipanayotou () and Michael S. Michael ()
Additional contact information
Panos Hatzipanayotou: Athens University of Economics and Business

No 1811, DEOS Working Papers from Athens University of Economics and Business

Abstract: We develop a model of a small open economy, where pollution per unit of consumption between domestically produced and imported quantities of the same good differs. We show that the first-best policy combination calls for consumption taxes on all polluting goods, and Border Tax Adjustment (BTA) measures, i.e., tariffs or import subsidies. We identify conditions under which well known tariff-tax reform policies for developing economies, such as a consumer-price-neutral piecemeal reform of a trade and a consumption tax, and a consumer-price-neutral reform of all trade and consumption taxes improve welfare. We also evaluate whether a consumer-price-neutral reform of a tariff and a consumption tax is superior to a reform of a tariff alone.

Keywords: Consumption generated Pollution; Optimal Taxation; Border Tax Adjustments; Trade and Consumption Tax Reforms (search for similar items in EconPapers)
JEL-codes: F13 F18 H20 H21 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ene, nep-pub and nep-reg
Date: 2018-11-13
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed

Downloads: (external link)
http://wpa.deos.aueb.gr/docs/Border.Tax.Adjustment ... mption.Pollution.pdf First version (application/pdf)

Related works:
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:aue:wpaper:1811

Access Statistics for this paper

More papers in DEOS Working Papers from Athens University of Economics and Business Contact information at EDIRC.
Bibliographic data for series maintained by Ekaterini Glynou ().

 
Page updated 2018-12-11
Handle: RePEc:aue:wpaper:1811