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| Author: | Marsiliani, L. Renström, T.I. |
| Title: | Time inconsistency in environmental policy: tax earmarking as a commitment solution |
| Journal: | Economic Journal
2000 : MAR, VOL. 110:462, p. C123-C138 |
| Index terms: | Commitment Environmental policy Tax policy Time consistency |
| Language: | eng |
| Abstract: | Tax earmarking imposes a constraint on government policymaking, and may be desirable if it solves a time-inconsistency problem in tax policy. In a two-period economy, in which the policy decisions regarding taxes, public goods provision, and pollution abatement are taken by a majority-elected individual, the authors show how the time-inconsistency problem in environmental policy arises. |
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