International Cooperation over Green Taxes: On the Impossibility of Achieving a Probability-One Gain

Thomas Aronsson, Kenneth Backlund and Karl-Gustav Löfgren

No 567, CESifo Working Paper Series from CESifo

Abstract: This paper concerns international coordination of environmental taxation. The main contribution of the paper is to provide a frame-work for dynamic cost benefit analysis of environmental tax reforms in a global economy with transboundary environmental problems. We show that the welfare effects of green tax reform in a multi-country economy may differ substantially from earlier results associated with representative agent models, where the transboundary aspect of the environmental problems is neglected.

Keywords: environmental taxation; global external effects. (search for similar items in EconPapers)
Date: 2001
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Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_567

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