Three Essays on Taxation, Environment, and Welfare

Three Essays on Taxation, Environment, and Welfare

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My dissertation examines theoretically the effects of environmental taxation on welfare in various cases. Using a general equilibrium model, the first chapter shows that a Pigouvian tax provides a larger welfare gain than an output tax, since it induces substitution among inputs as well as reduction in output of the dirty good, while an output tax induces only the output reduction. Using data for China and the U.S., numerical simulation results show that the potential welfare loss from not being able to use a Pigouvian tax is much larger in developing countries than in developed countries.they only reduce consumption of goods and services produced using emissions. 3 Furthermore, they may affect other non-targeted activities (Eskeland and Jimenez, 1992). Why are environmental output (or input) taxes so popular then? First ofanbsp;...

Title:Three Essays on Taxation, Environment, and Welfare
Author: Inkee Hong
Publisher:ProQuest - 2007

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