Schwartz, Jesse; Repetto, Robert - In: Environmental & Resource Economics 15 (2000) 2, pp. 149-157
The literature on the use of environmental taxes inthe presence of distortionary (labor) taxes warns thata partial-equilibrium Pigouvian tax analysis is notappropriate because increasing the price of dirtygoods can futher aggravate the prexisting distortions. This argument is most frequently...