Greenhouse effect, international trade and local taxation of oil products

Effet de serre, échanges internationaux et taxation locale des produits pétroliers

Julien Daubanes () and André Grimaud
Additional contact information
André Grimaud: LERNA - Economie des Ressources Naturelles - UT Capitole - Université Toulouse Capitole - UT - Université de Toulouse - INRA - Institut National de la Recherche Agronomique - CEA - Commissariat à l'énergie atomique et aux énergies alternatives, UT Capitole - Université Toulouse Capitole - UT - Université de Toulouse

Post-Print from HAL

Abstract: This article deals with the impacts of national environmental taxes on economic efficiency when pollution is global. We propose a dynamic, two-country model where the use of a non-renewable resource generates emissions accumulating in a world stock of atmospheric pollution. We assume that the two countries differ along their total productivity, their size and their endowments with the resource, which is entirely owned by one country. We show that the use of national taxes may correct the global pollution externality if governments coordinate on the temporal profile of taxes. Nevertheless, each government is tempted to strategically use the level of its tax. Countries' heterogeneities then entail different taxes, and therefore different final prices, thus creating a new distortion in the allocation of the resource. This analysis suggests an argument against the use of environmental taxes in the fight against greenhouse effect, at the benefit of other instruments. The argument mainly relies on the diverging interests of countries in levying tax revenues on the use of non-renewable resources.

Keywords: TAXATION; LOCALE (search for similar items in EconPapers)
Date: 2010
References: Add references at CitEc
Citations:

Published in Revue Economique, 2010, 61 (1), pp.115-134. ⟨10.3917/reco.611.0131⟩

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:hal:journl:hal-02659443

DOI: 10.3917/reco.611.0131

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().