Existing researches on tax efficiency of environmental taxes mostly focuses on taxes imposed on the consumption process of the final output, or goods that create pollution during the input process of intermediate goods. The assumption here is that there is a significant relation between the consumption of polluting goods and the pollution itself. However, in reality they are not identical. This signifies that the above assumption may distort the actual results. This study classifies environmental tax into two different forms, output tax and emission tax. The former is the tax that is imposed on the consumption of polluting goods, while the latter is directly levied onto the emission of pollution. It then compares the efficiency of these taxes through the computational general equilibrium simulations. (The rest omitted)
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