The Pigouvian Tax Rule in the Presence of an Eco-Industry
Data
01.01.2005
01.01.2005
Autori
Bernard Sinclair-Desgagné, Alain-Désiré Nimubona
Codice JEL
H23,L13
H23,L13
Parole chiave:
Pigouvian taxes,Environment industry
Pigouvian taxes,Environment industry
Publisher
Climate Change and Sustainable Development
Climate Change and Sustainable Development
Editor
Carlo Carraro
Carlo Carraro
Pollution abatement goods and services are now largely being delivered by a specialized “eco-industry.” This note reconsiders Pigouvian taxes in this context. We find that the optimal emission tax will depart from the marginal social cost of pollution according to the polluters’ and the environment firms’ relative market power.