Publication type: Article in scientific journal
Type of review: No review
Title: Price-standard approach and distortionary labor taxes
Authors: Schleiniger, Reto
Felder, Stefan
Published in: Finanzarchiv
Volume(Issue): 54
Issue: 4
Page(s): 516
Pages to: 536
Issue Date: 1997
Publisher / Ed. Institution: Mohr Siebeck
ISSN: 0015-2218
Language: English
Subjects: Green taxes; Optimal taxation; Consumption taxes; Production taxes; Renewable energy; Energy consumption; Personal income taxes; Labor demand; Commodities
Subject (DDC): 330: Economics
Abstract: In a first-best world with lump-sum taxes, a uniform tax levied across polluting activities minimizes the costs of achieving an environmental standard. This so-called price-standard approach may no longer apply when distortionary taxes pre-exist. Imposing a lower tax on price-elastic activities as current energy tax schemes propose may be welfare improving. This paper shows, however, that the price-standard approach even holds in a secondbest world where revenues from environmental taxes are used to reduce a pre-existing distortionary labor tax. Rather surprisingly, the environmental benefits of a higher tax rate for a price-elastic polluting activity are exactly offset by the costs of a higher tax distortion, provided all polluting activities are subject to the same tax rate. In einer erstbesten Welt kann eine kostenminimale Verwirklichung eines Umweltstandards durch eine für alle umweltbelastenden Aktivitäten gleich hohe Umweltabgabe erreicht werden. In diesem Artikel wird gezeigt, daß der Preis-Standard-Ansatz auch in einer zweitbesten Welt mit verzerrenden Steuern auf Arbeit gilt, wenn aus fiskalischen Gründen keine Differenzierung der Besteuerung der Umweltbelastungen angezeigt ist. Insbesondere ist es in diesem Fall nicht optimal, den Energieverbrauch im Haushaltssektor gegenüber der in der Produktion eingesetzten Energie diskriminierend zu besteuern.
Fulltext version: Published version
License (according to publishing contract): Licence according to publishing contract
Departement: School of Management and Law
Organisational Unit: Center for Energy and Environment (CEE)
Appears in collections:Publikationen School of Management and Law

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