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Behavioral and Distributional Effects of Environmental Policy

Most people would agree that it makes sense to tax a company that pollutes in a way that directly reflects the amount of environmental and social damage it has done. Yet in practice, such taxes are fraught with difficulty and have far-reaching implications. A company facing a new tax may lay off workers, for example, exacerbating an unemployment problem. This volume focuses on such external issues and examines in detail the trade-offs involved in designing policies to deal with environmental problems. Reflecting the broad nature of the subject, the contributors include leading economists in the areas of public finance, industrial organization, and trade theory, as well as environmental economists. Integrating both theoretical and empirical methods, they examine environmental policy design as it relates to location decisions, compliance costs, administrative costs, effects on research and development, and international factor movements. Shedding light on an extraordinarily complex and important topic, this collection will be of interest to all those involved in designing effective environmental policy.

Table of Contents

Acknowledgments
Introduction by Carlo Carraro and Gilbert E. Metcalf
1. A Tax on Output of the Polluting Industry Is Not a Tax on Pollution: The Importance of Hitting the Target
Don Fullerton, Inkee Hong, and Gilbert E. Metcalf
Comment: Gilbert H. A. van Hagen
2. Neutralizing the Adverse Industry Impacts of CO2 Abatement Policies: What Does It Cost?
A. Lans Bovenberg and Lawrence H. Goulder
Comment: Ruud A. de Mooij
3. Green Taxes and Administrative Costs: The Case of Carbon Taxation
Sjak Smulders and Herman R. J. Vollebergh
Comment: Dallas Burtraw
4. An Industry-Adjusted Index of State Environmental Compliance Costs
Arik Levinson
Comment: Domenico Siniscalco
5. Costs of Air Quality Regulation
Randy A. Becker and J. Vernon Henderson
Comment: Aart de Zeeuw
6. International Factor Movement, Environmental Policy, and Double Dividends
Michael Rauscher
Comment: David F. Bradford
7. The Environmental Regime in Developing Countries
Raghbendra Jha and John Whalley
Comment: Edward B. Barbier
8. Environmental Information and Company Behavior
Domenico Siniscalco, Stefania Borghini, Marcella Fantini, and Federica Ranghieri
Comment: Kevin Hassett
9. Environmental Policy and Firm Behavior: Abatement Investment and Location Decisions under Uncertainty and Irreversibility
Anastasios Xepapadeas
Comment: Charles D. Kolstad
10. The Effects of Environmental Policy on the Performance of Environmental Research Joint Ventures
Yannis Katsoulacos, Alistair Ulph, and David Ulph
Comment: Jerome Rothenberg
Contributors
Author Index
Subject Index

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