Mota, Rui Pedro and Domingos, Tiago (2006): Welfare effects of green tax reforms in one sector and two sector dynamic economies.
Download (180kB) | Preview
The main focus of this paper is twofold. First is to design Pigouvian taxes for different kinds of environmental external effects on the market economy in order to be possible to say what is the relevant information in each situation. Second is to address the question of the welfare effects of using close to Pigouvian taxes in real economies. This is done by considering more general conditions than those used by Aronsson et al. (2003). In particular, we take the ecosystem dynamics as being density dependent, and we assume that there are errors in measuring both the consumers marginal utility of nature and its regeneration rate. Additionally, we derive cost benefit rules for a green tax reform on the context of a two sector economy, in particular, a final goods sector and a knowledge sector, considering two externalities - one environmental externality and one technology externality.
|Item Type:||MPRA Paper|
|Original Title:||Welfare effects of green tax reforms in one sector and two sector dynamic economies|
|English Title:||Welfare effects of green tax reforms in one sector and two sector dynamic economies|
|Keywords:||Environmental externalities; Non-Pigouvian taxes; social cost benefit analysis|
|Subjects:||D - Microeconomics > D6 - Welfare Economics > D62 - Externalities
Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q5 - Environmental Economics > Q56 - Environment and Development ; Environment and Trade ; Sustainability ; Environmental Accounts and Accounting ; Environmental Equity ; Population Growth
Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q5 - Environmental Economics > Q55 - Technological Innovation
|Depositing User:||Rui Pedro Mota|
|Date Deposited:||03. Mar 2009 23:35|
|Last Modified:||19. Feb 2013 19:39|
Aronsson, T., 1999. On cost benefit rules for reen taxes. Environmental and Resource Economics. 13:31-43.
Aronsson, T., Löfgren, K., G., 1998. Green accounting in imperfect market economies. Environmental and Resource Economics. 11(3-4):273-287.
Aronsson, T., Löfgren, K., G., 1999. Pollution tax design and �green�national accounting. Environmental and Resource Economics. 43:1475-1474.
Aronsson, T., Löfgren, K., G., Backlund, K., 2004. Welfare measurement in imperfect markets. Edward Elgar, Cheltenham, UK.
Asheim, B. G., and M.L. Weitzman 2001. Does NNP Growth Indicate Welfare Improvement?, Economic Letters 73, 233-239
Hartwick, J., M., 1990. Natural resources, national accounting and economic depreciation. Journal of Public Economics. 43:291-30
LaFrance, J., Barney, L.,D., 1991. The envelope theorem in dynamic optimization. Journal of Economic Dynamics and Control. 15:355-38
Perrings, C., Vincent, J.,R., 2003. Natural Resource Accounting and Economic Development. Edward Elgar, UK
Pezzey, J., 2004. Sustainability policy and environmental policy. Scandinavian Journal of Economics. 106(2):339-359.
Weitzman, M L (1976) On the Welfare Significance of National Product in a Dynamic Economy, Quarterly Journal of Economics, 90, 156-62
Weitzman, M., L., 2003. Income, Wealth and the Maximum Principle. Harvard University Press, London, England