The Case for a Two-Part Instrument: Presumptive Tax and Environmental Subsidy

Fullerton, Don; Wolverton, Ann

doi:10.3386/w5993

Cited by 37 publications

(49 citation statements)

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“…Policies to reduce GHG emissions from livestock Tax-subsidy combinations In cases (such as GHG emissions from livestock production) where it is administratively costly to monitor emissions, it is possible to increase the efficiency of an abatement technology subsidy by combining it with an output tax (Fullerton, 1997;Fullerton and Wolverton, 1999;Walls and Palmer, 2001). As discussed above, an abatement technology subsidy creates an incentive for producers to switch to a less-polluting technology, but it also decreases firms' average costs of production and therefore decreases the equilibrium break-even price.…”

Section: Gerber Key Portet and Steinfeldmentioning

confidence: 99%

Policy options in addressing livestock’s contribution to climate change

Gerber

Key

Portet

et al. 2010

Animal

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There is a great potential to reduce greenhouse gas (GHG) emissions related to livestock production. For achieving this potential will require new initiatives at national and international levels that include promoting research and development on new mitigation technologies; deploying, diffusing and transferring technologies to mitigate emissions; and enhancing capacities to monitor, report and verify emissions from livestock production. This study describes the sources of livestock-related GHG emissions and reviews available mitigation technologies and practices. We assess the main policy instruments available to curb emissions and promote carbon sinks, and discuss the relative merits of alternative approaches. We discuss recent experiences in countries that have enacted mitigation strategies for the livestock sector to illustrate some of the key issues and constraints in policy implementation. Finally, we explore the main issues and challenges surrounding international efforts to mitigate GHG emissions and discuss some possible ways to address these challenges in future climate agreements.

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Section: Gerber Key Portet and Steinfeldmentioning

confidence: 99%

Policy options in addressing livestock’s contribution to climate change

Gerber

Key

Portet

et al. 2010

Animal

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“…The tax/subsidy combination needed here is an example of the "two-part instruments" proposed by Fullerton and Wolverton (1999) to replace pollution taxes that pose particular monitoring or enforcement problems.…”

Section: An Assessment Of Hazardous Waste Taxesmentioning

confidence: 99%

Taxing Hazardous Waste: The U.S. Experience

Sigman

2003

SSRN Journal

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Many states in the US impose taxes on hazardous waste. This paper conducts an empirical evaluation of the determinants of these taxes and reviews earlier research on their effects on hazardous waste. Earlier studies have shown that the taxes affect waste management, but my results and other evidence suggest that the tax-induced changes may not have improved welfare. Terms of use: Documents inTaxes on industrial hazardous waste are one of the most extensive uses of pollution taxes in the United States. The federal government and many states governments have implemented such taxes. The diversity of hazardous waste taxes makes them an interesting example of pollution taxes because we can compare the responses of polluters to different tax regimes.In this paper, I discuss the existing state and federal hazardous waste taxes and issues in their design and implementation. The paper then presents an empirical analysis of the tax rates adopted by states. In particular, the question is: do these taxes reflect the environmental costs of waste as opposed to other government objectives? Although an earlier study (Levinson, 2003) examines determinants of tax rates, the analysis here expands the hypothesized sources of variation and emphasizes the role of external costs. The results provide some evidence that taxes vary with environmental costs -making it possible that they improve welfare -but also point to non-environmental determinants and much unexplained variation.I then review the literature on the empirical effects of these taxes 2 on pollution and economic behavior. Studies have found only small effects of the state taxes, but these effects indicate that waste generators and managers do respond to the incentives created by taxes. The following section evaluates the advantages and disadvantages of existing taxes on hazardous waste and proposes some alternatives. A final section briefly concludes with an assessment of the U.S. experience with these taxes.

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“…Thus the real net wage and labor supply are unchanged. In fact, as shown in Fullerton and Wolverton (1996), each environmental tax has an equivalent two-part instrument. Any tax on waste may be difficult to enforce, and it can always be replaced by an equivalent combination of a presumptive tax on production plus an environmental subsidy.…”

Section: An Environmental Subsidymentioning

confidence: 99%