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The Effects of Differentiated Emission Taxes

Shiro Takeda ()

No 2001-02, Discussion Papers from Graduate School of Economics, Hitotsubashi University

Abstract: Extending the standard 2 x 2 Heckscher-Ohlin-Samuelson model to include emission as the third production factor, we consider the effects of emission taxes on outputs and the level of emission. The following results are derived. First, an increase in emission tax imposed on one industry may paradoxically increase the outputs of the industry. Second, an increase in emission tax imposed on one industry may raise the total level of emission.

Keywords: Emission; the Heckscher-Ohlin-Samuelson model; differentiated emission taxes (search for similar items in EconPapers)
JEL-codes: F11 F18 Q28 (search for similar items in EconPapers)
Pages: 15 p.
Date: 2001-01
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Persistent link: https://EconPapers.repec.org/RePEc:hit:econdp:2001-02

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