Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/189120 
Year of Publication: 
1990
Series/Report no.: 
Queen's Economics Department Working Paper No. 795
Publisher: 
Queen's University, Department of Economics, Kingston (Ontario)
Abstract: 
In a simple two factor, two good, two person general equilibrium model with pollution, we indicated a case in which the introduction of optimal Pigovian corrective taxes results in an equilibrium with a higher level of pollution. Our argument turns on our two persons earning incomes from distinct input sources and having different tastes for the two goods, one of which causes pollution. The introduction of taxes causes one person's income to rise relative to the other person's and can induce a shift in total consumption toward the commodity causing pollution.
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.