The Pigouvian Tax Rule in the Presence of an Eco-Industry

17 Pages Posted: 2 May 2005

See all articles by Bernard Sinclair-Desgagne

Bernard Sinclair-Desgagne

SKEMA Business School - Sophia Antipolis Campus

Alain-Désiré Nimubona

Department of Economics, University of Waterloo & CIRANO

Date Written: April 2005

Abstract

Pollution abatement goods and services are now largely being delivered by a specialized "eco-industry." This note reconsiders Pigouvian taxes in this context. We find that the optimal emission tax will depart from the marginal social cost of pollution according to the polluters' and the environment firms' relative market power.

Keywords: Pigouvian taxes, Environment industry

JEL Classification: H23, L13

Suggested Citation

Sinclair-Desgagne, Bernard and Nimubona, Alain-Désiré, The Pigouvian Tax Rule in the Presence of an Eco-Industry (April 2005). FEEM Working Paper No. 57.05. Available at SSRN: https://ssrn.com/abstract=705183 or http://dx.doi.org/10.2139/ssrn.705183

Bernard Sinclair-Desgagne (Contact Author)

SKEMA Business School - Sophia Antipolis Campus ( email )

60 rue Dostoïevski
Sophia Antipolis, 06902
France

Alain-Désiré Nimubona

Department of Economics, University of Waterloo & CIRANO ( email )

Waterloo, Ontario N2L 3G1
Canada

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
122
Abstract Views
1,507
rank
239,030
PlumX Metrics