Border Tax Adjustments and Tariff-Tax Reforms with Consumption Pollution
Nikos Tsakiris (),
Panos Hatzipanayotou () and
No 1811, DEOS Working Papers from Athens University of Economics and Business
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
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)
Journal Article: Border tax adjustments and tariff‐tax reforms with consumption pollution (2019)
Working Paper: Border Tax Adjustments and Tariff-Tax Reforms with Consumption Pollution (2018)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
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 ().