transfers and public goods are each integrated into a common optimal tax framework with the income tax and commodity taxes at …

in a second-best setting with pre-existing factor taxes. We find that interactions with pre-existing taxes fundamentally … significantly higher efficiency costs than what would apply in a first-best world with no pre-existing taxes. Revenue …-raising regulations (taxes) enjoy a revenue-recycling effect that offsets much of the tax-interaction effect, but non …

benefits of damage reduction should guide the design of both carbon taxes and permit schemes. Because expected marginal damage …

directive that marginal taxes should equal marginal external harms needs to be modified in light of the preexisting distortion … commodity taxes equal to marginal harms (and subsidies equal to marginal benefits) can generate a Pareto improvement. Likewise …

distortions from preexisting taxes and in the elasticity of emissions with respect to the carbon price. Our analytical model …

taxes in the presence of pre-existing distortionary taxes. Both models indicate, contrary to what several analysts have … may have seriously overstated the size of the optimal carbon tax by disregarding pre-existing taxes, and that the optimal …