Emission Taxes and Optimal Refunding Schemes with Endogenous Market Structure |
| |
Authors: | Susumu Cato |
| |
Institution: | 1.Institute of Social Science,The University of Tokyo,Tokyo,Japan |
| |
Abstract: | The purpose of this paper is to investigate optimal schemes for refunding the emission tax in a free-entry market where the
production process generates emissions. We consider the regulation by a three-part tax policy: the government sets an emission
tax, a refunding scheme, and an entry-license tax. In contrast to the case of the two-part tax-refund policy under no entry,
we show that even if it is impossible to obtain subsidies from outside, the first-best outcome is always attained. Further,
the government’s budget constraint is binding under the optimal schemes. Our result implies that the tax-refund system works
effectively in a market with endogenous entry. |
| |
Keywords: | |
本文献已被 SpringerLink 等数据库收录! |
|