Is Pollution a Giffen Good? General-Equilibrium Analysis and Some Policy Implications

This paper takes a simple model with pollution and environmental quality and derives some novel results. In particular, pollution is shown to be a Giffen good. This is a very important finding with clear policy implications, namely that carbon taxes (and pollution permits) are counter-productive, as they lead to increase in pollution, and instead governments should administratively set emission caps.

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Year of publication:	2019
Authors:	Vasilev, Aleksandar
Published in:	Journal of Environmental Management and Tourism. - Craiova : ASERS, ISSN 2068-7729. - Vol. X.2019, 3(35), p. 488-490
Publisher:	Craiova : ASERS
Subject:	pollution \| carbon tax \| Giffen good

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Type of publication:	Article
Type of publication (narrower categories):	Article
Language:	English
Other identifiers:	10.14505/jemt.v10.3(35).02 [DOI] hdl:10419/200501 [Handle] RePEc:zbw:espost:200501 [RePEc]
Classification:	Q2 - Renewable Resources and Conservation; Environmental Management ; Q4 - Energy ; Q54 - Climate; Natural Disasters ; Q58 - Government Policy
Source:	EconStor

Persistent link: https://www.econbiz.de/10012029984