HAL: halshs-00719762, version 1

Detailed view

Export this paper BibTeX - EndNote - TEI - RefWorks -

From Regressive Pollution Taxes to Progressive Environmental Tax Reforms

Mireille Chiroleu-Assouline (  Corresponding author ) 1, 2, Mouez Fodha 1, 3

(2012-07)

European countries have increased their use of environmental tax instruments by designing new tax bases. But, many countries have to face the opposition of the public opinion, for fear of the distributive consequences of these environmental tax reforms. This paper sheds light on the distributive consequences of environmental tax policies when households are heterogeneous. The objective is to assess whether an environmental tax reform could be Pareto improving, when the revenue of the pollution tax is recycled by a change in the labor tax properties. We show that, whatever the degree of regressivity of the environmental tax alone, it is possible to design a recycling mechanism that renders the tax reform Pareto improving, by simultaneously decreasing the average rate of the wage tax and increasing its progressivity.

1:	Ecole d'Économie de Paris - Paris School of Economics (EEP-PSE)
	Ecole d'Économie de Paris
2:	Centre d'économie de la Sorbonne (CES)
	CNRS : UMR8174 – Université Paris I - Panthéon-Sorbonne
3:	LEO
	Université d'Orléans

Research team: Axe Environnement

Subject

:

Humanities and Social Sciences/Economies and finances

Keyword(s): Environmental tax reform – heterogeneity – welfare analysis – tax progressivity

halshs-00719762, version 1

http://halshs.archives-ouvertes.fr/halshs-00719762

oai:halshs.archives-ouvertes.fr:halshs-00719762

From: Lucie Label <>

Submitted on: Friday, 20 July 2012 17:25:39

Updated on: Monday, 23 July 2012 09:24:31