Optimal Fiscal Policy and the Environment

Optimal Fiscal Policy and the Environment
The paper studies the setting of optimal fiscal policy in a second-best world with environmental externalities. The optimal second-best pollution tax is shown to lie below the first-best Pigovian tax, particularly if substitution between labor and polluting intermediate inputs is easy, the labor supply curve is more elastic, and preexisting... READ MORE...

Publication date: September 1998
ISBN 9781451856613
$15.00

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