Optimal environmental charges/taxes : easy to estimate and surplus-yielding
Date of Issue2004
School of Humanities and Social Sciences
The estimation of the optimal charges/taxes on environmental disruption and the financing of the spending on the abatement of environmental disruption are important practical problems. This paper shows that, for most cases where some abatement is desirable, both the estimation and the financing problems may be easily solved. It is desirable to charge disruption (at least) at the marginal cost of abatement (which is easier to estimate than the marginal damage of disruption) and such a charge will normally yield total revenue in excess of the amount of abatement spending.
DRNTU::Social sciences::Economic development
Environmental and resource economics
© 2004 Kluwer Academic Publishers. This is the author created version of a work that has been peer reviewed and accepted for publication by Environmental and Resource Economics, Kluwer Academic Publishers. It incorporates referee’s comments but changes resulting from the publishing process, such as copyediting, structural formatting, may not be reflected in this document. The published version is available at: [http://dx.doi.org/10.1023/B:EARE.0000036770.21797.16 ].