Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/89734
Authors: 
Michael, Michael S.
Hatzipanayotou, Panos
Year of Publication: 
2013
Series/Report no.: 
CESifo Working Paper 4501
Abstract: 
We consider a two small open economies model with cross-border pollution that is generated from consumption. Within this framework we examine i) the non-cooperative equilibrium consumption taxes and compare them to when pollution is only local, ii) the cooperative equilibrium consumption taxes and we compare them to the non-cooperative tax rates, and iii) cases where cooperative taxes are different between countries. In this framework, tax harmonization may not be the optimal policy if, for example, pollution per unit of consumption differ between countries. Many results of the paper depend on the relationship in consumption (i.e., complementarity or substitutability) between pollution and the polluting good.
Subjects: 
consumption taxes
cross-border pollution
non-cooperative and cooperative equilibrium
JEL: 
H21
H23
Document Type: 
Working Paper

Files in This Item:
File
Size





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