Arbeitspapier

Vertical fiscal externalities and the environment

We show that imposition of a state-level environmental tax in a federation crowds out pre-existing federal taxes. We explain how this vertical fiscal externality can lead unilateral state-level environmental policy to generate a welfare gain in the implementing state, at the expense of other states, even absent any environmental benefits. Using a computable general equilibrium model of the Canadian federation, we show that vertical fiscal externalities can be the major determinant of the welfare change following environmental policy implementation by a state government. Our numerical simulations indicate that - as a consequence of vertical fiscal externalities - state governments can reduce greenhouse gas emissions by over 20 percent without any net cost to themselves.

Sprache
Englisch

Erschienen in
Series: Economics Working Paper Series ; No. 16/234

Klassifikation
Wirtschaft
Computable General Equilibrium Models
Intergovernmental Relations; Federalism; Secession
Climate; Natural Disasters and Their Management; Global Warming
Thema
fiscal externality
climate policy
federalism
computable general equilibrium
Umweltpolitik
Ökosteuer
Finanzbeziehungen
Externer Effekt
Szenariotechnik
Sensitivitätsanalyse
Dekompositionsverfahren
Allgemeines Gleichgewicht
Kanada

Ereignis
Geistige Schöpfung
(wer)
Böhringer, Christoph
Rivers, Nicholas
Yonezawa, Hidemichi
Ereignis
Veröffentlichung
(wer)
ETH Zurich, CER-ETH - Center of Economic Research
(wo)
Zurich
(wann)
2016

DOI
doi:10.3929/ethz-a-010608767
Handle
Letzte Aktualisierung
20.09.2024, 08:22 MESZ

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

  • Arbeitspapier

Beteiligte

  • Böhringer, Christoph
  • Rivers, Nicholas
  • Yonezawa, Hidemichi
  • ETH Zurich, CER-ETH - Center of Economic Research

Entstanden

  • 2016

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