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| Author: | Fullerton, D. Heutel, G. |
| Title: | The general equilibrium incidence of environmental taxes |
| Journal: | Journal of Public Economics
2007 : APR, VOL. 91:3-4, p. 571-591 |
| Index terms: | environment pollution policy taxation |
| Language: | eng |
| Abstract: | This article explores the distributional effects of a pollution tax in general equilibrium, with general forms of substitution where pollution might be a relative complement or substitute for labor or for capital in production. Article finds closed form solution for pollution, output prices and factor prices, and it shows exact conditions for the wage to rise relative to the capital return. Then the article assigns plausible values to all the parameters and finds that variation over the possible range of factor intensities have less impact than variation over the possible range of elasticities. |
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