Mixed Taxation and Transboundary Externalities: A Model with Large Jurisdictions
2014 (English)In: Public Finance Review, ISSN 1091-1421, E-ISSN 1552-7530, Vol. 42, no 2, 254-282 p.Article in journal (Refereed) Published
This paper concerns income taxation and commodity taxation in a multi-jurisdiction framework with transboundary environmental damage. The decision-problem facing the government in each such jurisdiction is represented by a two-type model (with asymmetric information between the government and the private sector). We show how the possibility to influence the world-market producer price adds mechanisms of relevance for redistribution and externality-correction which, in turn, affect the domestic use of taxation. Finally, with the noncooperative Nash equilibrium as a reference case, we consider the welfare effects of policy coordination.
Place, publisher, year, edition, pages
Sage Publications, 2014. Vol. 42, no 2, 254-282 p.
Trade and Environment, Optimal Taxation, Externalities
Research subject Economics
IdentifiersURN: urn:nbn:se:umu:diva-72748DOI: 10.1177/1091142113487008ScopusID: 2-s2.0-84893972805OAI: oai:DiVA.org:umu-72748DiVA: diva2:627175