| Authors |
Tsakiris, N., Hatzipanayotou, P. and Michael, M. |
| Title |
Border Tax Adjustments and Tariff-Tax Reforms with Consumption Pollution |
| Abstract |
We develop a model of a small open economy, where pollution per unit of consumption between domestically produced and imported quantities of the same good differs. We show that the first-best policy combination calls for consumption taxes on all polluting goods, and Border Tax Adjustment (BTA) measures, i.e., tariffs or import subsidies. We identify conditions under which well known tariff-tax reform policies for developing economies, such as a consumer-price-neutral piecemeal reform of a trade and a consumption tax, and a consumer-price-neutral reform of all trade and consumption taxes improve welfare. We also evaluate whether a consumer-price-neutral reform of a tariff and a consumption tax is superior to a reform of a tariff alone. |
| Creation Date |
2018-12-17 |
| Keywords |
Consumption generated Pollution, Optimal Taxation, Border Tax Adjustments, Trade and Consumption Tax Reforms |
| Classification JEL |
F13, F18, H20, H21 |
| File |
Border.Tax.Adjustments.and.Tariff.Tax.Reform.with.Consumption.Pollution.pdf (330475 bytes) |
| File-Function |
First version |
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Copyright © 2009 [D.I.E.S.S. A.U.E.B.]. All rights reserved.
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