Konferenzbeitrag

Taxing Pollutuion: Agglomeration and Welfare Consequences

This paper demonstrates that a pollution tax with a fixed cost component may lead, by itself, to segregation between clean and dirty firms without heterogeneous preferences or increasing returns. We construct a simple model with two locations and two industries (clean and dirty) where pollution is a by-product of dirty good manufacturing. Under proper assumptions, a completely stratified configuration with all dirty firms clustering in one city emerges as the only equilibrium outcome when there is a fixed cost component of the pollution tax. Moreover, a stratified Pareto optimum can never be supported by a competitive spatial equilibrium with a linear pollution tax. To support such a stratified Pareto optimum, however, an effective but unconventional policy pre-scription is to redistribute the pollution tax revenue from the dirty to the clean city residents.

Sprache
Englisch

Erschienen in
Series: 52nd Congress of the European Regional Science Association: "Regions in Motion - Breaking the Path", 21-25 August 2012, Bratislava, Slovakia

Klassifikation
Wirtschaft
Externalities
Taxation and Subsidies: Externalities; Redistributive Effects; Environmental Taxes and Subsidies
General Equilibrium and Welfare Economic Analysis of Regional Economies
Thema
Pollution Tax
Agglomeration of Polluting Producers
Endogenous Stratification

Ereignis
Geistige Schöpfung
(wer)
Berliant, Marcus
Peng, Shin-Kun
Wang, Ping
Ereignis
Veröffentlichung
(wer)
European Regional Science Association (ERSA)
(wo)
Louvain-la-Neuve
(wann)
2012

Handle
Letzte Aktualisierung
10.03.2025, 11:44 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Konferenzbeitrag

Beteiligte

  • Berliant, Marcus
  • Peng, Shin-Kun
  • Wang, Ping
  • European Regional Science Association (ERSA)

Entstanden

  • 2012

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