Tariff and environmental tax reforms in a polluted small open economy with public production

Akihiko Yanase

    Research output: Contribution to journalArticlepeer-review

    1 Citation (Scopus)

    Abstract

    This paper presents a general-equilibrium model of a small open economy, in which the production process of private goods generates pollution, and the government finances the production cost of a public consumption good through revenue from tariffs and pollution taxes. Since a variety of distortions, including pollution, trade protection, and public production, exist, a change in tariffs and/or environmental taxes affects economic welfare, both directly and indirectly. Taking these effects into account, the conditions for welfare-enhancing, piecemeal policy reform are derived.

    Original languageEnglish
    Pages (from-to)333-349
    Number of pages17
    JournalFinanzArchiv
    Volume66
    Issue number4
    DOIs
    Publication statusPublished - 2010 Dec 1

    Keywords

    • Public production
    • Trade and environment
    • Welfare-enhancing policy reform

    ASJC Scopus subject areas

    • Finance

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