Environmental responsibility versus taxation (original) (raw)
Related papers
Considerations Regarding the Environmental Responsibility and Taxation
The public policy tool of taxation may generate discouraging effects upon the economic agents – consumers or producers – but also could be used as incentives. High environmental taxation could generate crowding effect in terms of responsibility. Sometimes a very sophisticated system of environmental taxation is the basis for a highly regulated business environment and conformity but with a lack of real responsible citizenship. We are trying to see if the impact of taxation upon responsibility is real and can affect the motivation for environmental responsible citizenship. The main findings are related to the impact of regulating power of environmental taxes. Also there is evident the interest of entrepreneurs in environmentally responsible behavior and the less information about the benefits of responsible citizenship.
Green taxation and individual responsibility
Ecological Economics, 2007
The current article aims at studying the e¤ects of taxation on environmental quality, in an economy where its agents are responsible. Individual responsibility towards nature is modelized by the voluntary e¤ort to which the households have agreed insofar as the improvement of environmental quality is concerned. Given that such e¤ort is taken from one's allocated time for leisure, its opportunity cost is that of the sacri…ced time for leisure, and is therefore equal to the individual's wage. We shall highlight that State intervention through the introduction of a (green) tax always crowds out individual responsibility. However, the intensity of this crowding-out depends on the performance of the State. Moreover, State intervention could, depending on the amount of crowding-out, reduce the overall quality of the environment. In a general equilibrium setting, we show that the crowding-out e¤ect is not systematic. This is because there will then be an interaction between e¤ort (or work time) and the cost of that e¤ort (linked to the individual's wage, and therefore to production and …nally to work/e¤ort). In this article, we shall discuss the conditions under which public policy crowds out individual responsibility within this context.
ENVIRONMENTAL TAXATION: EXTRA-FISCALITY AND CONTRIBUTION TO THE ECOLOGICALLY BALANCED ENVIRONMENT (Atena Editora), 2022
Man's relationship with nature, historically characterized by expropriation, began to be discussed when the finitude of the planet's resources became evident. The search for development at any cost and the way in which this was implemented caused profound consequences for the global ecosystem, pointing out that an inversion of values would be necessary and an ecologically balanced environment became a concern that takes more and more space in today's society. The idea of sustainability assumed a fundamental role in the attempt to develop mechanisms in defense of the environment. In the private sphere, economic growth conditioned to sustainability has become an objective to be pursued in order to break with the logic of private profits and social losses. The public power, in turn, began to play a key role in the definition of government public policies aimed at development associated with sustainability, in the search for an ecological balance. In this north, regulatory instruments such as the extrafiscal taxation, a product of the interaction between Tax Law and Environmental Law, began to play a central role in market regulation, promotion and changes in social behavior and effective action in defense of socio-environmental balance.
THE ROLE AND IMPORTANCE OF TAX POLICIES IN PREVENTING ENVIRONMENTAL POLLUTION
Environmental pollution has been a vital issue day by day due to the increase of production and consumption activities, the rapid increase of the world population and varieties of people’s needs accordingly. The dream of leaving an indigenous and unpolluted nature for the future generations has been getting difficult because of polluting the nature and besides since no measures have been adequately taken to prevent pollution of the environment. Today the states have used the tax policies to reach the goals on environmental policy and by taxation of factors damaging environment, it has been mainly aimed that those who degrade the environment should bear the penalty of the degradations they do, rather than increasing public incomes. Environmental taxes are known as green tax, carbon tax, emission tax and pollution tax in the literature. In this study, at first it will be explained the contributions of environmental taxes and their implementations in different countries in the literature, then compared environmental taxes in our country with implementations in different countries; finally the lacks on this topic and some theoretical approaches will be analyzed. Keywords: Environment, Pollution, Tax, Tax Policy
Microeconomic Implications of Environmental Tax
2020
The devastation of the environment occurs mainly as a result of intensive economic development. The study of its consequences is a subject of interest of experts from various professional orientations. Economic theorists, ecologists and all those involved in the creation of solutions in the field of environmental policy, product designers and new technological procedures constantly point to the need for alignment of economic development goals and the environmental consequences that economic progress causes. Excluding natural disasters, external diseconomies in production are the most powerful cause of environmental degradation, regardless of whether they occur in the form of hydro, aero or lithium pollution. The aim of this paper is to show how the introduction of pollution taxes affects the behavior of market players, the amount of pollution and the magnitude of social well-being. In most cases, the market mechanism cannot adequately address the problem of negative externalities in production. But, on the other hand, this state, because of limited information on the consequences of environmental damage or for other reasons, through its intervention in the market, can produce an outcome worse than that created by the uncontrolled market.
Mismatches in the Concept of Environmental Taxes
WU International Taxation Research Paper Series No. 2015-02, 2015
Environmental taxation has become as a key element of green economy and sustainable growth. The relevance of taxation in this field is based on the effectiveness of eco-taxes to control the environmental cost. Nevertheless, the use of environmental taxation is not free from criticisms due to the fact that a tax is addressed to fund public expenditures. In this paper, the author tackles the mismatches found in the concept of environmental taxes. With the purpose to turn into a Sustainable and Green European Economy, environmental taxes could promote the reduction of pollution or avoid the most dangerous activities for the environment.
Optimal Environmental Taxation from Society's Perspective
American Journal of Agricultural Economics, 2004
Much has been made recently of comparisons between the optimal environmental tax and the marginal social damage from pollution when moving from a first-best setting to a second-best setting involving distortionary taxes (Bovenberg and de Mooij, Parry, Bovenberg and Goulder). Generally speaking, the recent literature observes that results for a first-best setting may not be valid in a secondbest setting. The present analysis finds that this same general theme applies when defining social values and, in particular, when expressing the social marginal rate of substitution (MRS) between the environment and income on which the definition of marginal social damage (MSD) is based. We find that a commonly used expression for MSD involving the sum of individuals' private marginal rates of substitution between the environment and income is only equal to the social MRS at the first-best optimum. In a second-best setting with distortionary taxes, this expression is no longer equal to the social MRS and thus does not provide a consistent measure of relative values from society's perspective.
The Welfare Effects of Environmental Taxation
Environmental & Resource Economics, 2011
Recent literature has investigated whether the welfare gains from environmental taxation are larger or smaller in a second-best setting than in a first-best setting. This question has mainly been addressed indirectly, by asking whether the second-best optimal environmental tax is higher or lower than the first-best Pigouvian rate. Even this indirect question has itself been approached indirectly, comparing the second-best optimal environmental tax to a proxy for its first-best value, marginal social damage (MSD). On closer examination, however, MSD becomes ambiguously defined and variable in a second-best setting making it an unreliable proxy for the Pigouvian rate. Given these observations, the current analysis reevaluates these welfare questions and finds that when compared directly to its first-best value, the second-best optimal environmental tax generally rises with increased revenue requirements. Even in cases where the second-best environmental tax is lower than its first-best value, the welfare gains may be greater than in a first-best setting. These results suggest that the marginal fiscal benefit (revenue recycling effect) exceeds the marginal fiscal cost (tax base effect) over a range of environmental tax rates that, for benchmark models, extends above the first-best Pigouvian rate. These findings reinforce the intuition that environmental policy complements rather than competes with the provision of other public goods.
Environmental Protection and Optimal Taxation
Policy Research Working Papers, 1999
The Policy Researcb Working Paper Series disseminates the findings of work in progress to encourage the exchange of ideas about development issues. An objective of the series is to get the findings out quickly, even if the presentations are less than fully polished. The papers carry the names of the authors and should be used and cited accordingly. The findings, interpretations, and conclusions are the authors' own and should not be attributed to the World Bank, its Executive Board of Directors, or any of its member countries.