@techreport{Hadjiyiannis2004Pollution,
abstract = {The paper examines the interaction among taxes on factors income, environmental quality and
welfare. We construct a two-country regional block model with capital mobility and crossborder
pollution. Pollution in the two countries is simultaneously abated by the private sector,
in response to a pollution tax and by the public sector utilizing income and pollution tax
revenue. We demonstrate, among other things, that due to the existence of cross-border
pollution in many cases the Nash optimal policy on capital income is a positive tax, even if
taxes on the income of immobile factors are chosen optimally. This tax rate increases with the
degree of cross-border pollution.},
author = {Costas Hadjiyiannis and Panos Hatzipanayotou and Michael S. Michael},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
keywords = {F18; F15; F22; H21; 330; optimal income taxes; public pollution abatement; cross-border pollution; capital mobility; Kapitalertragsteuer; \"{O}kosteuer; Umweltpolitik; Steuerwettbewerb; Optimale Besteuerung; Grenz\"{u}berschreitende Umweltbelastung; Internationale Kapitalmobilit\"{a}t; Zwei-L\"{a}nder-Modell; Theorie},
language = {eng},
number = {1208},
title = {Pollution and capital tax competition within a regional block},
type = {CESifo working papers},
url = {http://hdl.handle.net/10419/18847},
year = {2004}
}
