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Ecological Tax Reforms and the Environment: A Note[Note 1. Helpful comments by Jürgen Eichberger, Roger Guesnerie, Ray Rees ...]
Author(s) -
Schöb Ronnie
Publication year - 1998
Publication title -
bulletin of economic research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.227
H-Index - 29
eISSN - 1467-8586
pISSN - 0307-3378
DOI - 10.1111/1467-8586.00053
Subject(s) - economics , natural resource economics , ecology , public economics , biology
There is widespread agreement on the ability of ecological tax reforms to improve the environmental quality. This paper, however, points out that a negative marginal impact on the environment cannot be ruled out for revenue‐neutral ecological tax reforms in both first‐best and second‐best frameworks. Therefore, sufficient conditions are derived which ensure the improvement of the environmental quality.