Tax normalizations, the marginal cost of funds, and optimal environmental taxes

Authors
Williams, RC
Citation
Rc. Williams, Tax normalizations, the marginal cost of funds, and optimal environmental taxes, ECON LETT, 71(1), 2001, pp. 137-142
Citations number
7
Categorie Soggetti
Economics
Journal title
ECONOMICS LETTERS
ISSN journal
01651765 → ACNP
Volume
71
Issue
1
Year of publication
2001
Pages
137 - 142
Database
ISI
SICI code
0165-1765(200104)71:1<137:TNTMCO>2.0.ZU;2-7
Abstract
Prior results on second-best optimal environmental taxes fail to hold under alternative tax normalizations, partly because the marginal cost of funds varies with the tax normalization. However, under any normalization, the op timal environmental tax typically lies below marginal damages. (C) 2001 Els evier Science B.V. All rights reserved.