Behavioral and Distributional Effects of Environmental Policy

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Overview

Most people would agree that it makes sense to tax a company that pollutes in a way that directly reflects the amount of environmental and social damage it has done. Yet in practice, such taxes are fraught with difficulty and have far-reaching implications. A company facing a new tax may lay off workers, for example, exacerbating an unemployment problem. This volume focuses on such external issues and examines in detail the trade-offs involved in designing policies to deal with environmental problems. Reflecting the broad nature of the subject, the contributors include leading economists in the areas of public finance, industrial organization, and trade theory, as well as environmental economists. Integrating both theoretical and empirical methods, they examine environmental policy design as it relates to location decisions, compliance costs, administrative costs, effects on research and development, and international factor movements. Shedding light on an extraordinarily complex and important topic, this collection will be of interest to all those involved in designing effective environmental policy.

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Product Details

Meet the Author

Carlo Carraro is a professor of environmental economics at the University of Venice and research director of the Fondazione Eni Enrico Mattei.

Gilbert E. Metcalf is a professor of economics at Tufts University and a research associate of the National Bureau of Economic Research.

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Table of Contents

Acknowledgments Introduction by Carlo Carraro and Gilbert E. Metcalf
1. A Tax on Output of the Polluting Industry Is Not a Tax on Pollution: The Importance of Hitting the Target Don Fullerton, Inkee Hong, and Gilbert E. Metcalf Comment: Gilbert H. A. van Hagen
2. Neutralizing the Adverse Industry Impacts of CO2 Abatement Policies: What Does It Cost?
A. Lans Bovenberg and Lawrence H. Goulder Comment: Ruud A. de Mooij
3. Green Taxes and Administrative Costs: The Case of Carbon Taxation Sjak Smulders and Herman R. J. Vollebergh Comment: Dallas Burtraw
4. An Industry-Adjusted Index of State Environmental Compliance Costs Arik Levinson Comment: Domenico Siniscalco
5. Costs of Air Quality Regulation Randy A. Becker and J. Vernon Henderson Comment: Aart de Zeeuw
6. International Factor Movement, Environmental Policy, and Double Dividends Michael Rauscher Comment: David F. Bradford
7. The Environmental Regime in Developing Countries Raghbendra Jha and John Whalley Comment: Edward B. Barbier
8. Environmental Information and Company Behavior Domenico Siniscalco, Stefania Borghini, Marcella Fantini, and Federica Ranghieri Comment: Kevin Hassett
9. Environmental Policy and Firm Behavior: Abatement Investment and Location Decisions under Uncertainty and Irreversibility Anastasios Xepapadeas Comment: Charles D. Kolstad
10. The Effects of Environmental Policy on the Performance of Environmental Research Joint Ventures Yannis Katsoulacos, Alistair Ulph, and David Ulph Comment: Jerome Rothenberg Contributors Author Index Subject Index

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