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Environmental Migration and Capital Mobility

Chi-Chur Chao, Shan Mong, Jean-Pierre Laffargue () and Eden Yu
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Jean-Pierre Laffargue: CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique

Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) from HAL

Abstract: Based on utility equalization, this paper considers a developing economy with labor migration. Pollution and capital taxes are imposed on producers in the polluted sector. The optimal policy combinations of capital taxes and pollution taxes for the host economy are examined. A zero capital tax is required for increasing mobility of capital to raise real GDP, while a larger than Pigovian pollution tax is needed for enhancing environmental amenities. The impacts on those two optimal tax rates are examined theoretically and numerically if foreign countries adopt higher environmental standards or if foreign countries impose tax credits on foreign investments.

Keywords: Environmental migration; pollution tax; capital tax (search for similar items in EconPapers)
Date: 2016-03-01
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Citations: View citations in EconPapers (5)

Published in International Review of Economics and Finance, 2016, 42, pp.430-441

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Related works:
Journal Article: Environmental migration and capital mobility (2016) Downloads
Working Paper: Environmental Migration and Capital Mobility (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:cesptp:hal-01450763

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