Dr Thomas Renstrom t.i.renstrom@durham.ac.uk
Associate Professor
Optimal taxation, environment quality, socially responsible firms and investors
Renstrom, T.; Spatarom, L.; Marsiliani, L.
Authors
L. Spatarom
Professor Laura Marsiliani laura.marsiliani@durham.ac.uk
Professor
Abstract
We characterize the optimal pollution-, capital- and labour-tax structure in a continuous-time model in the presence of pollution (resulting from production), both in the first- and second-best, allowing investors to be driven by social responsibility objectives. The social responsibility objective takes the form of warm-glow, as in Andreoni (1990) and Dam (2011), inducing firms to reduce pollution through increased abatement activity. Among the results, the second-best pollution tax displays an additivity property and the Chamley–Judd zero capital-income tax can be violated under warm-glow preferences. We also show that first- and second-best pollution taxes are positive, under warm-glow preferences, and, under mild assumptions, the latter yield lower first-best pollution taxes and lower pollution intensity.
Citation
Renstrom, T., Spatarom, L., & Marsiliani, L. (2019). Optimal taxation, environment quality, socially responsible firms and investors. International review of environmental and resource economics, 13(3-4), 339-373. https://doi.org/10.1561/101.00000112
Journal Article Type | Article |
---|---|
Acceptance Date | Aug 2, 2019 |
Online Publication Date | Sep 18, 2019 |
Publication Date | Jan 1, 2019 |
Deposit Date | Aug 5, 2019 |
Publicly Available Date | Mar 18, 2020 |
Journal | International Review of Environmental and Resource Economics |
Print ISSN | 1932-1465 |
Electronic ISSN | 1932-1473 |
Publisher | Now Publishers |
Peer Reviewed | Peer Reviewed |
Volume | 13 |
Issue | 3-4 |
Pages | 339-373 |
DOI | https://doi.org/10.1561/101.00000112 |
Public URL | https://durham-repository.worktribe.com/output/1296016 |
Files
Accepted Journal Article
(987 Kb)
PDF
Copyright Statement
The final publication is available from now publishers via https://doi.org/10.1561/101.00000112
You might also like
Decarbonisation Policies and Energy Price Reforms in Bangladesh
(2022)
Journal Article