The Economics of Welfare
... Boa parte dos métodos de valoração parte das premissas da Economia Ambiental Neoclássica para estabelecer valores de referência, sujeitos às incertezas relativas à informação incompleta e racionalidade limitada de consumidores e produtores. Estes valores de referência resultantes da valoração econômica podem ser utilizados para o estabelecimento de multas ou compensações relativas a danos ambientais provocados pelas atividades produtivas e atores sociais ou para balizamento de taxações ou subsídios (PIGOU, 1920). ...
... Diversos são os modelos que visam corrigir esse dilema da livre apropriação de bens comuns. A valoração econômica de serviços ecossistêmicos pode ser aplicada sob a perspectiva popularizada por Arthur Cecil Pigou, de taxações e incentivos pigouvianos, que assume o papel central do Estado no equacionamento do dilema dos bens comuns (PIGOU, 1920). O modelo estabelece que agentes privados ficariam sujeitos a taxações, ou receberiam subsídios e incentivos (como os Pagamentos por Serviços Ambientais -PSA) de acordo com seu papel no uso, degradação ou conservação dos bens comuns. ...
this books presents an interdisciplinary approach based on reserach on Environmental Governance in the Macrometropolis of São Paulo facing Climate Variability. The book analyses, governance, territory, energy, climate and environmental services in 25 chapters.
... Concernant l'émission de pollution, les deux instruments les plus répandus sont les taxes (ou subventions) et les marchés de permis d'émissions. Une taxe fixée au coût marginal des dommages liés à la pollution (changement climatique, impacts sanitaires des particules, etc.) permet aux entreprises d'internaliser l'impact de leur production, c'est à dire de tenir compte des effets environnementaux de leurs décisions (Pigou, 1920). Les marchés de permis d'émissions, ou instruments dits cap-and-trade, peuvent également permettre cette internalisation. ...
... With regard to pollution emissions, the two most widespread instruments are taxes (or subsidies) and emission permits markets. A tax set at the marginal cost of the damages linked to pollution (climate change, health impacts of air pollutants, etc.) allows firms to internalize the impact of their production, i.e. to take into account the environmental effects of their decisions (Pigou, 1920). Emission permit markets, called cap-and-trade instruments, are a second type of efficient instruments. ...
The three chapters of this thesis are independent and contribute to environmental economics through different approaches. The first chapter, Inter-Firm and Intra-Firm Spillover Effects of Industrial Regulation, co-authored with Geoffrey Barrows, Raphael Calel, and Hélène Ollivier, presents a new method for estimating the impact of a regulation in the presence of inter- and intrafirm spillover effects. In particular, when competition is imperfect, a regulation targeting some firms is also likely to affect unregulated firms. Thus, the traditional difference-indifferences approach will not evaluate the full impact of the regulation. To overcome this limitation, we develop a structural model and an empirical strategy to estimate the effects of a regulation affecting a sub-population of industrial facilities. We apply our method to the European Emission Trading System and show that it reduced carbon emissions from regulated facilities as well as from the French manufacturing sector as a whole, butincreased revenues of regulated French firms. While pollution should be reduced in more densely populated locations, stringent regulations may also harm local industries and reduce workers’ incomes. In the second chapter, entitled An Optimal Distribution of Polluting Activities Across Space, I analyze these conflicting forces using a spatial economics model to identify which cities should be targeted by air quality policies. When the effects of pollution are not internalized by firms and workers respond to poor air quality by migrating away, then the largest cities may be too small compared to the optimum. Imposing a higher pollution price in these locations relative to the rest of the country would lead to higher welfare. The empirical application on French cities shows that current policies impose higher emission prices in large cities, but welfare gains are still possible. There is a lot of evidence that air pollution has negative effects on the productivity of industrial workers. However, little is known about its consequences on the economic performance of firms that employ these workers. In the third chapter, The Effects of Air Pollution on Exports: Evidence from PM2.5 & French Firms, co-authored with Geoffrey Barrows and Hélène Ollivier, we examine the effects of temporary and local increases in PM2.5 air concentration on the exports of French firms. Our approach relies on highly disaggregated data, both in space and in time. To estimate the causal impact of pollution on exports, we instrument local pollution concentrations using exogenous variations in wind direction over time. We find that higher pollution levels lead to lower export values and quantities.
... In his article entitled, "The Problem of Social Cost", Coase (1960) challenged Pigou's approach contained in "The Economics of Welfare" related to efforts to solve externality problems. Pigou (1932) argues that negative externalities result in social costs that must be addressed by the government [7]. He proposed a tax system, known as the "Pigovian Tax", to solve the problem of social costs. ...
... In his article entitled, "The Problem of Social Cost", Coase (1960) challenged Pigou's approach contained in "The Economics of Welfare" related to efforts to solve externality problems. Pigou (1932) argues that negative externalities result in social costs that must be addressed by the government [7]. He proposed a tax system, known as the "Pigovian Tax", to solve the problem of social costs. ...
... Otro problema al respecto, también procedente de Walras y la Escuela de Lausana, es la asunción de la interdependencia de los cuatro grandes mercados (cuestión incorporada a la síntesis neoclásica por Hicks con su modelo IS-LM), o la sumisión de todos los mercados al de bienes (según Keynes y su demanda agregada), El problema es que todos estos planteamientos tienen demasiadas presunciones y condicionantes caeteris paribus. En el capitalismo industrial y su economía de bienestar estatal (welfare state economy-WSE -o welfare economics segúnPigou, 1920), sí cabe cierta admisión al respecto, por su normalización masiva de factores productivos y su producción, bajo la lógica de economía a escala, pero no ha lugar con el capitalismo del talento (para Horizonte 2030) y la economía de bienestar personal (wellbeing economics) de la economía digital. En tal sentido, los heterodoxos mainline ofrecen una variada caja de herramientas intelectuales para afrontar el tránsito de WSE a WBE (vid. ...
Revisión analítica, de corte crítico-hermenéutico, sobre el auge y declive de la síntesis neoclásica y la emergencia de la síntesis heterodoxa impulsada por la revitalización de la Escuela Austriaca. Se ofrece un diagnóstico del agotamiento del pensamiento económico ortodoxo, dado su exceso formalista e instrumental, alejado de la realidad, además de acelerarse su extinción por los postulados de la actual dirección neo y poskeynesiana desde la Gran Recesión de 2008. Como alternativa correctora, que devuelva la Economía al entorno de las Ciencias Sociales y a fundamentos basados en la acción humana real, se presenta una muestra de la síntesis heterodoxa y su modelo de economía de bienestar personal, adaptado a la economía digital.
... Environmental tax is an economic incentive type of environmental regulation. Pigou (1932), the founder of welfare economics, revealed that environmental tax could internalize the cost of negative externalities to raise the operating costs of high-polluting enterprises. It can also achieve a balance between the internal and external costs of the enterprise (De Mooij 2002). ...
How environmental taxes affect green innovation in businesses is closely related to enterprise sustainable development and green economic development. This study uses the data of non-financial listed companies from 2010 to 2020 in China, and adopts the difference-in-difference method to examine the effect of the environmental protection tax (EPT) on corporate green innovation in China. Results show that EPT reform has a significantly negative effect on corporate green innovation, and the robustness test supports this result. EPT has a larger inhibitory effect on non-state-owned enterprises’ green innovation than state-owned enterprises. This inhibiting effect is particularly prominent in companies situated in northern and low-marketization regions. Further analysis shows that EPT affects enterprises’ green innovation by reducing the cash flow and financing of enterprises. This study provides an empirical basis for the implementation of the EPT policy.
... The Pigou Theory is based on the principle of welfare economics which posits that emissions produce social costs that negatively impact third parties. As such, the government duty is to address the pollution problem through market mechanisms (Pigou, 1932). The theory was postulated by the British economist Arthur Pigou, one of the most prominent contributors to the externality theory in early 1900s (Baumol, 1972). ...
The influence of tax regime in reducing dilapidated vehicles’ demand and attendant pollution is puzzling global south cities. This article provides an assessment on how environmental tax is or is not curbing down the importation of the Dilapidated Motor Vehicles (DMVs) with a view to reduce vehicular emissions in the city of Dar es Salaam, Tanzania. A multilevel perspective employing mixed methods of data collection was used to collect qualitative and quantitative data through document review, group discussions, in-depth interviews from selected Members of Parliament, policymakers, government officials, and brand new as well as DMVs dealers. Content, trend and discourse analysis enabled to interpret qualitative data. Findings reveal that taxing importation of DMVs is not significantly reducing air pollution. The side effects of the increased DMVs import in polluting the environment are increasing due to the rise in income levels, population increase and technical challenges of estimating marginal social cost. As DMVs tax was not reflected in the exporter’s cost schedule, the non-inclusion gives a market failure scenario a la Pigou Theorem. Rethinking of an optimal environmental tax remains a complex sociopolitical issue calling for research and policy attention.
... Parmi l'évolution de ces frontières, un point positif se dégage : la dégradation de la couche d'ozone ne s'est pas accentuée récemment grâce à l'interdiction de certains produits refroidissants. (Pigou, 1920). Certains ont proposé des solutions comme la création de marchés pour régler les différends autour de l'usage de ce bien commun qu'est l'air (Hardin, 1968 (Gray et al., 1987;Gray, 2010 Ascui (2014) analyse l'inscription de la comptabilité carbone au sein de la comptabilité sociale et environnementale. ...
Si cette nouvelle décennie débute avec de nombreuses promesses, les 45 dernières années furent contrastées entre les tentatives de réfuter l’existence du changement climatique et celles d’organiser sa résilience à travers des séries de rassemblements environnementaux internationaux tels que le protocole de Kyoto (1997), la COP 21 (2015) ou la COP 26 (2021). En effet, depuis les années 2000, la réglementation s’est renforcée et de nombreux standards volontaires (GRI, CDP, IIRC, TCFD) ont vu le jour pour venir compléter le cadre règlementaire existant tout en répondant aux attentes de la société. La thèse est constituée de trois articles de recherche ayant un objet d’étude commun : le reporting climat. L’objectif général de la thèse est de réaliser un lien entre les connaissances scientifiques, les attentes de la société et les réponses institutionnelles des entreprises à travers le reporting climat autour du réchauffement climatique.
... Environmentally related taxes are one of many ways of dealing with the so-called negative externalities of human activities (Coase, 1960), such as water and air pollution, resource depletion, biodiversity loss, etc. The concept was first introduced by Pigou (1920), and later the idea behind it found its way into policies of governments around the world. In the 1990s, the Scandinavian countries started to introduce environmental taxes into their tax mixes, soon followed by others. ...
... Entrepreneurship has a vital role in solving the environmental challenges the world is facing. The traditional theory regarding the environment and welfare indicates that market failures in the economy impede entrepreneurial activities to solve environmental problems, motivating environmentally degrading entrepreneurial behaviors (Pigou, 1932;Tietenberg, 2000;Cropper & Oates, 1992;Bator, 1958). There are also authors considering entrepreneurship as a modality of solving market failure problems (Coase, 1974;Buchanan & Faith, 1981;North & Thomas, 1970, Demsetz, 1970 and, respectively, issues related to the environment (Anderson & Leal, 1997, Anderson & Leal, 2001. ...
PURPOSE: Entrepreneurship seen as an engine for economic development is especially desirable for emerging countries to support rapid growth. Moreover, entrepreneurs can support social transformation in favor of more sustainable products and services. Sustainable orientation of entrepreneurship contributes to sustainable development goals and prevents environmental deprivation. However, the sustainable development agenda can also influence entrepreneurship. METHODOLOGY: The conducted bibliometric analysis confirmed the growing interest among scholars in the correlation of entrepreneurship to sustainability in the last years. Furthermore, panel regression (static model) was used to explore the variables on entrepreneurship influencing the sustainable development goal (SDG) index in emerging countries, and Levin, Lin and Chu (LLC), W-Stat-IPS, ADF-Fisher Chi-Square, and PP-Fisher Chi-Square tests were applied to analyze the variables stationarity. In order to examine the existence of structural breaks, the robustness was checked on single cross-section units and on the whole panel dataset. In addition, the Hausmann test was used to select between random and fixed effects, and heteroskedasticity of residues, autocorrelation of residues and dependence of residues between the panels were conducted. Data was analyzed through Eviews 13. FINDINGS: This paper investigates the relationship between sustainability and entrepreneurship in emerging countries. It discusses the impact of sustainable development on entrepreneurship and the influence of entrepreneurship on sustainable development. IMPLICATIONS: The study results can be used by governments and policymakers to plan their strategies and policies
... Climate change, which is primarily caused by CO 2 emissions, is a classic example of a negative externality that has been known to economists at least since the work of Pigou [13]. Negative externalities lead to market failure if they are not considered in the price setting process. ...
The aviation industry is challenged to reduce its climate impact. The introduction of sustainable aviation fuels (SAF) is, among other policy instruments such as the European Emissions Trading Scheme, an option favored by policymakers in Europe to achieve this objective. These fuels feature substantially reduced carbon life-cycle emissions in comparison to fossil fuels. In Europe, a mandatory quota for the use of sustainable fuels will most likely be introduced, starting in the year 2025. The introduction of a blending mandate by governments and the European Commission is associated with a range of challenges. The purpose of this paper is to discuss the economics of climate change mitigation in aviation and the role SAFs can play. The economic issues associated with the introduction of SAFs are analyzed, with a particular focus on the European Commission’s proposal for a blending mandate. Several suggestions for improvement are discussed. Furthermore, alternatives to SAFs are presented and evaluated.
... The standard economic answer to biophilia is to "price the unpriced externality," for example, by using taxes or tradeable permits to put a price on human activities that harm nature. 3 This has been done with some success for pricing power plant sulfur dioxide pollution and ozone-damaging chlorofluorocarbon emissions, but with much less success for carbon emissions. Despite decades of effort, only about 0.8 percent of global emissions are subject to a carbon price consistent with the Paris Agreement. ...
Markets must be made biophilic: that is, compatible with life flourishing on Earth. To do so, we must abandon prevailing notions of market efficiency and reconceive markets as social evolutionary systems embedded in nature. Such a reconception enables us to see that constraining markets within biophysical boundaries would not result in zero-sum trade-offs with the economy, but instead would drive market evolution to new forms of prosperity.
... The taxation of negative externalities has its origins in the work by Pigou (1932), who proposed the Pigouvian tax. Negative externalities occur when a third party is negatively affected or incurs damage, due to an economic activity of which s/he is not part (Hafstead, 2019: 3;BTCE, 1998). ...
The introduction of the carbon tax by South Africa was primarily aimed at reducing pollution, and possibly improving the welfare of South African households. One of the ways of reducing pollution in the construction industry is to discourage the use of building materials that are high carbon emitters or have high energy intensities. This article used the Input-Output (IO) method and sensitivity analysis to study the effects of carbon tax on welfare distribution of South African households, using the 2014-2015 Living Conditions Survey (LCS). The study also set out to determine the relative sensitivity of price changes of some building materials after application of the 2019 carbon tax. Results showed that non-ferrous, ferrous, and prefabricated-based building materials had higher relative price sensitivities to carbon tax compared to other materials that were predominantly based on glass, cement, and treated metals. Increases in carbon tax may not discourage usage of relatively higher emissions-intensity materials like cement compared to wood. Operational building costs were dominated by electricity costs, with the burden being highest for lower income households. Any revenue-recycling efforts of the 2019 carbon tax for welfare purposes were marginal. However, the tax can be used to subsidize energy for lower income households.
... the theory of the internalization of externalities related to environmental goods has been elaborated by Arthur c. Pigou, who mentioned environmental taxes for the first time as early as in 1932. By defining environmental tax, he developed the theory of welfare economics, pointing out the insufficiency of resource allocation and the costs incurred as a result of environmental pollution (Pigou, 1932;csikósová, et al., 2020). ...
This paper deals with the environmental impact of taxes. The relevance of the topic is given on the one hand by the climate change, which is increasingly coming to the fore, and on the other hand by the impact of taxes on the economy, which has also been in the focus of research. The natural, political, economic and, last but not least, the pandemic in the past few years have increasingly drawn the attention of humanity and the leaders of states to the importance of environmental protection. The goal of our study is to analyze environmental protection measures and the budgetary role of taxes levied in Hungary and Slovakia. As a result, conclusions will be drawn based on the obtained results and proposals will be formulated. The research focused on tax types that directly or indirectly contribute to environmental protection. We consider it important to present the possible effects of different tax types on environmental protection, as well as their economic importance. The theoretical part of the paper is based on scientific papers. The research is based on the analysis of secondary sources, primarily data published by the offices of Hungary, Slovakia, and the European Union. We analyze the development of the ratio of environmental taxes in relation to total tax revenues and GDP, as well as the changes in tax revenues from the three most important types of environmental taxes from 2011 to 2020.
... Examples for such a tax type are the proposed Tierwohlabgabe of the German expert commission and the German electricity tax. The second variant is, in the spirit of a Pigouvian tax 43 , differentiated to represent differences in external damages associated with the product, such as alcohol or tobacco taxes and the German CO 2 price on fuels. Meat types with a higher carbon footprint in case of a climate tax, or produced by farms with poorer husbandry conditions in case of an animal welfare tax, are charged a higher tax rate per kilogram than those with lower emissions or better husbandry conditions, respectively. ...
A tax on meat could help address the climate impact and animal welfare issues associated with the production of meat. Through a referendum choice experiment with more than 2,800 German citizens, we elicited support for a tax on meat by varying the following tax attributes: level and differentiation thereof, justification and salience of behavioural effects. Only at the lowest tax level tested do all tax variants receive support from most voters. Support is generally stronger if the tax is justified by animal welfare rather than climate change mitigation. Differentiated taxes that link the tax rate to the harmfulness of the product do not receive higher support than a uniform tax; this indifference is not driven by a failure to anticipate the differential impacts on consumption. While the introduction of meat taxation remains politically challenging, our results underscore the need for policymakers to clearly communicate underlying reasons for the tax and its intended behavioural effect.
... Marshall (2009), in Principles of Economics, introduced the concept of "external economies." Pigou and Aslanbeigui (2017) further developed the theory of externalities by introducing "internal diseconomies" and "external diseconomies" in The Economics of Welfare, which eventually led to the theory of externalities. Pigou's theory of externalities assumes that profits cannot be maximized through free competition at some point in the financial market. ...
Under the initiative of sustainable development, green financial mechanisms have become an important object to study environmental protection and reduce energy consumption and environmental pollution. This paper explores the mechanism of green finance’s effect on China’s industrial structure through panel regression and mediating effect models using panel data from 30 Chinese provinces and cities from 2009 to 2019. The findings show that 1) the level of green finance is high in both eastern and central regions, but the industrial structure in the eastern region is the most balanced and reasonable. From the results, the consistency between the industrial structure and the level of green finance development is stronger in eastern China. 2) The study of the mechanism of green finance’s role through the intermediary effect model shows that there is an overall mechanism of green finance influencing the upgrading of industrial structure through the financial sector in China, but it is manifested as partial intermediation, and the direct role of green finance on the industrial structure is more obvious. 3) In the analysis of regional heterogeneity, the intermediary role of the financial industry does not exist in the eastern and western regions, while the central region shows a masking effect. In response to these results and to promote the transformation and upgrading of industrial structure, the recommendation of this paper is to focus on the important role of financial institutions in developing green finance to adjust industrial structure, especially in the central region, where both green finance and industrial structure are at an intermediate level. Each region should adjust its industrial structure according to the time and place and promote upgrading the industrial structure.
... На відміну від класиків політичної економії, представники неокласики аргументовано доводять нагальну необхідність здійснення кількісної формалізації матеріального добробуту та економічного розвитку країн з її відображенням у відповідних математичних моделях. Так, ще у 1920 р. побачила світ фундаментальна робота А. Пігу «Економіка добробуту» [26], у якій автор обґрунтовує цілісну концепцію екстерналій. На її методологічній базі у світовій регуляторній практиці згодом було сформовано розгалужений інструментарій інтерналізації природних втрат через вартість природного капіталу (розпорядження та контроль, податки та субсидії, платні дозволи та законодавчі вимоги, плата за послуги тощо). ...
The article proves the objective nature of the formation of the paradigm of sustainable development as a response to the challenges of the industrial era. The factors of formation and development of this paradigm from the middle centuries to the modern post-industrial stage of human development have been considered. The author proposed a periodization of the theoretical discourse of sustainable development based on the methodological approach of T. Kuhn. It has been emphasized in the article that according to this approach, the evolution of scientific thought regarding its development can be divided into several stages according to the system of criteria. The first stage in the author's periodization is called the pre-paradigmatic stage, which covers five centuries of the formation of theoretical opinion about the role of resource and environmental factors in the formation of social well-being. The main theories have been analyzed and a conclusion has been made regarding the distinctive features of this stage of the theoretical discourse of sustainable development issues. The author proves that the revolutionary qualitative change in the conceptual understanding by scientists of the processes of interaction of society and the environment at the levels from local to international and global lays the foundations for the second - paradigmatic - stage of development of the concept of sustainable development. The article deeply analyzes the features of this stage. The author also singles out and characterizes the factors of formation of the next stage of the theoretical discourse on sustainable development - the stage of normal science. The article emphasizes the main characteristic of this stage: acquisition of a dominant status by the green economy paradigm in the theoretical discourse. Within the framework of the proposed stage, the following periods are highlighted and characterized: the period of design of the green economy paradigm and the period of formation of its neo-paradigm. The author emphasizes that the main task of forming the neo-paradigm of the green economy is a qualitative update of the concept of sustainable development, the previous version of which did not lead to a solution to the global environmental problem.
... The analysis of passive compliance is based on the externality theory and resource allocation distortion theory [19,20]. The core idea of the above-mentioned theories is that environmental regulations make the manufacturing industry spend more on pollution control, such as the purchase of environmentally friendly equipment and the improvement of production processes leading to higher costs. ...
In order to tackle increasingly serious environmental problems, China has been promoting the development of a green economy and guiding the green transformation of various regions and industries through environmental regulation in recent years. By participating in international trade, Hebei Province has been embedded in the global value chain. However, Hebei’s involvement in the high-energy-consuming and polluting manufacturing sector and its lower position in the global value chain have led to serious environmental issues. In practice, the government has promulgated environmental regulations to restrict economic activities of enterprises. What role does environmental regulation play in Hebei’s manufacturing industry’s participation in the global value chain? In order to explore the impact of environmental regulation on Hebei’s manufacturing industry in the global value chain, this paper constructs a fixed-effect econometric model based on the panel data of the embedding level of the value chain of 12 manufacturing sectors in Hebei Province. The research results show that: first, the R & D capacity of the manufacturing industry in Hebei Province still needs to be improved. Second, environmental regulation has promoted the global value chain position of Hebei’s 12 manufacturing sectors. Third, environmental regulation will show obvious heterogeneity to manufacturing industries with different capital intensities and different pollution levels. The impact of environmental regulation on the manufacturing industry with different intensities is different. Therefore, the government should formulate targeted environmental regulation to promote the position of Hebei’s manufacturing industry in the global value chain, such as further improving environmental regulation and increasing the intensity of environmental regulation and increasing the investment of human capital, and cultivating innovative talents.
... Negative externalities present or cause market failures. Pigou's solution [9] to market failures involves interventions by the government/central planning to rectify the functioning of the market mechanism. In "The Problem of Social Cost", Coase criticises Pigou's solution, mainly because centralised approaches do not account for the motivation of stakeholders to find innovative win-win solutions under the specific conditions. ...
Environmentalists believe that the Coasean approach is economically efficient but environmentally unsustainable. While acknowledging that this approach is not always sustainable, this paper emphasises its important advantage—the presence of a criterion determining when an activity will/will not lead to an efficient/sustainable outcome. Coase formulated this criterion on what is termed in this paper “Coase’s proviso”—the balance between the net benefits of an institutional change (rearrangement of entitlements) and transaction costs associated with this change. The article also defines the terms “best use”, “second (or next) best use” and “best user”. On this basis, the paper restates Coase’s proviso and argues that there is no inherent contradiction between economic efficiency and environmental sustainability. According to the restated proviso, when the transaction costs associated with the institutional transformation establishing the best use of a resource are lower than the net benefits of this transformation, the result will be economically efficient and environmentally sustainable. However, if the transaction costs outweigh the net benefits of the best use, a second (or next) best use may be established, which will still be economically efficient, but most likely environmentally unsustainable. The paper explores a case study to check the relevance of the restated proviso.
... From an economic perspective, the ideal policy is a uniform global carbon price that covers all countries and sectors. Following the logic of Pigou (1920) and Montgomery (1972), this price should be set at the social cost of carbon (SCC). 2 Such a policy provides the correct incentives to internalize the climate externality, in line with the 'polluter pays' principle. Stern and Stiglitz (2017) estimate that the dynamic trajectory of a target-consistent global carbon price that is in line with the ambition of the Paris Agreement rises up to $50-100/tCO 2 by 2030. 3 As a market-based measure, its core appeal lies in achieving emissions abatement in a globally cost-effective manner. ...
As part of its Green Deal, the European Union has advanced a ‘Carbon Border Adjustment Mechanism’ (CBAM). Reflective of a trend towards greater use of coercive trade measures to advance environmental and other policy objectives, the CBAM would extend carbon pricing to imported goods with the aim of limiting carbon leakage. Theoretical enquiry into this type of policy approach—known as border carbon adjustments (BCAs)—suggests economic and environmental benefits, but typically discounts the role of legal and practical constraints on BCA design and implementation. In this paper, we show why the BCA design commonly featured in past research—basing the adjustment level on default carbon intensities—runs counter to the economic logic of carbon pricing by distorting the incentives for emissions abatement. Requiring producers to demonstrate their actual carbon intensity captures additional economic benefits of carbon pricing and improves the overall legal prospects of a BCA, but adds to its administrative complexity and creates risk of avoidance practices such as ‘resource shuffling’. What emerges is a more nuanced understanding of BCAs that highlights the challenges when transitioning from theory to practice.
Externalities, as both a pervasive phenomenon and a concept, lie at the centre of ecological thought and policy debates. This paper questions the adequacy of deeming of pervasive phenomena as externalities including by some authors in the (eco)socialist tradition. It critically reflects on the epistemological underpinnings of what is seen as internal and what as external, and reveals the role of methods used in economics as well as real social and economic processes characterising capitalism in configuring these so-called externalities. The roots of said externalities are traced beyond Marshall and Pigou, to whom the concept is usually attributed, and associated with political economists, especially Mill and Sidgwick. Despite all the metamorphoses in the content and implications of the concept of externalities since its birth, the constitutive role of methodological individualism as a common ground of all particular uses of externalities is demonstrated. However, externalities as a concept do not owe their existence solely to the individualistic method of mainstream economics. Real and practical processes defining capitalism are at least as important in understanding the content and function of externalities in both theoretical economics and political debates.
We analyze the welfare effects of price discrimination by a monopolistic platform that mediates between two sides of a market. Discrimination is based on asymmetric costs on one side of the market and may be allowed on either side or both sides. We show that unconstrained discrimination on both sides of the market improves welfare compared to uniform pricing but may be dominated by single-side discrimination. This result is driven by matching effects found between the sides, which add to the standard reallocation effects found within the sides.
JEL Classification Numbers: D4, L1
With an increased focus on social well‐being in response to a burgeoning global economy exposing the weaknesses of social welfare policies, research output in the field has grown exponentially. Keeping track of the evolving research themes proves difficult due to the steady rise in the number of studies published in the interdisciplinary field of social welfare. Therefore, researchers need a comprehensive overview to confirm the current shape of the field based on the published research. Using a latent Dirichlet allocation algorithm as a topic modelling technique, this study identified 12 prominent themes from more than 10,000 research outputs on social welfare published from 2000 to 2020 in Scopus‐indexed journals. Such an exploratory text‐mining approach to literature review provides broad insights into the diversity of research and may serve as a foundation for further in‐depth studies. Identifying these 12 thematic areas and their sub‐themes allows us to articulate the complexity and diversity of social welfare issues, which go far beyond the field of well‐established welfare economics or social work. The study shows that the topic of ‘social welfare’ has not only evolved over time but has significantly broadened its meaning. It can no longer be solely synonymous with institutional social security. We contend that research in this area needs to take into account a broader and more systematic range of determinants constituting the dynamic character of social welfare.
This study aims to investigate the perceptions and attitudes of individuals towards the excise tax applied in Turkey since 2002 and whether the excise tax is accepted as an externality tax. The data were collected through online and face-to-face survey methods from 1304 participants across Turkey and were analyzed by regression models. The results show that the excise tax directly affects individuals' expenditures in the high-income group. The perceptions of individuals with high general tax awareness and those who expect an update in tariffs every year have positive attitudes about the excise tax. The perceptions of those who think that the scope of the excise tax should be narrowed towards the excise tax are negative. Besides, the positive perceptions of excise tax by individuals who consume harmful products more frequently and those who think that the excise tax on harmful products should be raised support that the excise tax is an externality tax.
This chapter attempts to construct a new theoretical framework of sustainable natural resource governance by critically examining the existing theoretical positions. The chapter has focused on two theoretical approaches—(a) the market-centric approach and (b) the political economy approach. The new framework takes into account variables such as institution, power, political settlement and human sociality to find out the drivers of natural resource degradation and also to devise a sustainable governance mechanism to ensure a sustained relationship between human beings and nature. The aim, on the whole, is to provide a rigorous cause-and-effect understanding by building on, and moving beyond, the existing theories to address the objectives of the book.
当前，联合国后京都气候谈判进展迟缓，但世界各地却涌现出多中心的自主治理试验，并与碳市场机制相结合，推进公益市场化的进程。本书力求通过回顾臭氧保护、二氧化硫市场和碳市场的发展历程以及中美碳市场治理实践，回答“哪些行为体如何推动了气候公共物品的可持续提供”问题。通过案例分析和比较研究，笔者发现：全球公私合作关系（PPPs）是解决全球公益供给不足的新型治理模式，均衡的公私供求关系是公益可持续提供的源泉。
We consider a model of Bayesian persuasion with spillovers. A sender provides information to persuade a receiver to take an action with external effects. We consider how government interventions, including corrective subsidy and tax, affect social welfare. In addition to internalizing externalities, government interventions affect social welfare through an informational channel. Subsidies to the sender's preferred action incentivize the sender to reveal less information, but taxes on the sender's preferred action incentivize the sender to reveal more information. Because of such an informational effect, the optimal subsidy and tax may be different from the size of the externalities. In some cases, social welfare is maximized with no government intervention.
Carbon tax represents governments’ approach to steering the economy towards a greener future. Our research question focuses on the impact of carbon tax policy on a firm’s production decision and revenue and on total social welfare. In particular, we assume that a firm’s decision is subject to its behavioural considerations or, in other words, its risk attitude. We model a government plan to charge a carbon tax, and a risk-averse (or risk-neutral) firm needs to plan its production and estimate its profit if the carbon tax policy is implemented. We show that it is possible for a risk-averse firm’s optimal profit, in some cases, to be higher than that of a risk-neutral firm when facing a carbon tax. This implies that the risk-averse attitude is not necessarily harmful to the firm’s profit. For operations management scholars, our model highlights the importance of integrating firms’ behavioural responses into the carbon tax price. Our model suggests that for governments to implement carbon tax policy effectively, they should make carbon prices vary under certain conditions and not worry about price variation antagonising firms at large.
Several cities have restricted the use of private vehicles based on the last digit of a vehicle's license plate to reduce traffic congestion and pollution. However, the effectiveness of this measure has been questioned. In 2017, a hybrid scheme, License Plate Restriction Charging (LPRC), was implemented in Cali, Colombia. With this scheme, drivers can pay a charge (monthly, quarterly, or yearly) to circumvent the restriction, while the revenue is used to subsidise the BRT System. Cali was the first city in Latin America to implement such a scheme, while Colombia's capital, Bogota, adopted a similar policy in 2020. This article analyses the evolution of the measure using official information. In addition, we conducted a stated preferences survey and estimated a choice model to evaluate the behaviour of car owners to policy variables. Results show that LPRC price is the most relevant attribute in decision-making. Increasing the number of days with traffic restrictions and extending the hours of vehicle use restriction increases drivers' probability of paying for the LPRC. As currently implemented in Cali, the LPRC is a fixed cost that does not vary according to the car use level, encouraging users who pay for the exemption to use their car as much as possible to make the most out of the payment. Furthermore, the revenue from the charge contributes only marginally to financing the BRT. Finally, we propose several changes in the policy to improve its efficiency. Among them, consider a daily payment and hardening the current driving restriction.
This unique graduate textbook offers a compelling narrative of the growing field of environmental economics that integrates theory, policy, and empirical topics. Daniel J. Phaneuf and Till Requate present both traditional and emerging perspectives, incorporating cutting-edge research in a way that allows students to easily identify connections and common themes. Their comprehensive approach gives instructors the flexibility to cover a range of topics, including important issues - such as tax interaction, environmental liability rules, modern treatments of incomplete information, technology adoption and innovation, and international environmental problems - that are not discussed in other graduate-levels texts. Numerous data-based examples and end-of-chapter exercises show students how theoretical and applied research findings are complementary, and will enable them to develop skills and interests in all areas of the field. Additional data sets and exercises can be accessed online, providing ample opportunity for practice. For more information, visit the book's website at http://phaneuf-requate.com/.
In response to the intensifying ecological crisis, a growing number of governments are adopting green deals designed to both revive their economies and put those economies on a sustainable development trajectory. The success of these plans will depend on their ability to put involved economies on a path to decoupling economic activities from their environmental impacts. The challenges are daunting in terms of financial capacity, institutional reforms, and international cooperation.KeywordsEuropean Green DealNextGeneration EUEcological decouplingInternational cooperation
This chapter reviews the sub-optimal growth or post-growth proposals, which have become increasingly influential, that are motivated against the society’s pursuit of the optimal economic growth. To simplify, they can b e classified into three groups: a sustainable development critique, an ecological economics critique, and a degrowth critique. These critiques were initiated during the early 1970s and have trended over the course of history toward a declaration of zero or negative growth as desirable for the society. Among the principles across these theories is the limit to economic growth which is regarded by the theoreticians as ineluctable owing to the eventual biophysical as well as ecological limits of the planet. This chapter provides a set of responses to these critiques from the perspective of the society’s pursuit of an optimal economic growth pathway.KeywordsSub-optimal growthPost-growthSustainable developmentEcological economicsDegrowthEcological limitsLimits to growthOptimal economic growth
This chapter provides a review and synthesis of the preceding eleven chapters of this book which introduced ten major economic theories related to the pursuit of economic growth. Six chapters dealt with the individual resource sectors of the economy or six different natural resource enterprises: cropland farming, spatial land use, forest rotation, fossil fuel uses, fisheries, and financial assets. The five chapters dealt with the economywide growth theories: capital and interest, national savings, modern growth theory, optimal economic growth pathway, and carbon price. This chapter integrates the theories of optimal economic growth with the theories of managing natural resources efficiently to render a comprehensive picture.KeywordsOptimal economic growthNatural resourcesNational economic decisionsEnvironmental issuesNatural resource enterprisesEfficiency
Koopmans laid out a theoretical foundation for the pursuit by a national economy of an optimal economic growth pathway. In the Koopmans’s framework, the objective of the national economy is to maximize the social welfare defined as the sum of the flow of discounted social utilities over an infinite time horizon. The individual citizen’s welfare is a function of a generalized consumption. The economy’s production is determined by a production function whose inputs are labor, capital, and technological progress. In the optimal economic growth trajectory, the economy is predicted to grow approximately at the rate of population growth plus the discount rate plus the rate of unforeseeable technological growth, all of which depend on many economic variables such as market interest rates, social inequality aversion, and consumption patterns.KeywordsOptimal economic growthSocial welfare functionProduction functionPopulationTechnological growthCapital accumulationSocial rate of time preferenceMarket interest rateSocial inequality aversionConsumption
Wenn ein ökonomischer Akteur handelt – ganz egal, ob auf der Anbieter- oder der Nachfragerseite – hat das oft Auswirkungen auf unbeteiligte Dritte. Diese sogenannten externen Effekte können positiv oder negativ für die Betroffenen sein. Weil der Akteur diese Nebenwirkungen seines Handelns auf das Wohlergehen der Dritten nicht in sein Entscheidungskalkül einbezieht, erzeugt er von einem negativen externen Effekt zu viel, von einem positiven zu wenig. Dadurch entsteht ein Wohlfahrtsverlust. Neben direkter Regulierung durch den Staat kann eine Lösung darin bestehen, durch Steuern oder über einen Marktpreis für den externen Effekt den Akteur die Auswirkungen seines Handelns auf die Dritten „spüren“ zu lassen (sogenannte Internalisierung) und ihn so dazu zu bringen, diese Auswirkungen bei seiner Entscheidung zu berücksichtigen.
In this paper, we develop an approximation scheme for solving bilevel programs with equilibrium constraints, which are generally difficult to solve. Among other things, calculating the first-order derivative in such a problem requires differentiation across the hierarchy, which is computationally intensive, if not prohibitive. To bypass the hierarchy, we propose to bound such bilevel programs, equivalent to multiple-followers Stackelberg games, with two new hierarchy-free problems: a $T$-step Cournot game and a $T$-step monopoly model. Since they are standard equilibrium or optimization problems, both can be efficiently solved via first-order methods. Importantly, we show that the bounds provided by these problems -- the upper bound by the $T$-step Cournot game and the lower bound by the $T$-step monopoly model -- can be made arbitrarily tight by increasing the step parameter $T$ for a wide range of problems. We prove that a small $T$ usually suffices under appropriate conditions to reach an approximation acceptable for most practical purposes. Eventually, the analytical insights are highlighted through numerical examples.
This work examines the legal regime on intellectual property and competition, the relationship between the two systems, the overlapping areas and makes recommendations on how improvements can be made in Nigeria.
The law on Intellectual property aims to protect the creative and innovative works of an individual. It achieves this through its different systems; patent, copyright, trademarks, industrial design, geographical indications etc. Its primary purpose is not only to guarantee the right of the right holder over his work but also to protect the work against all forms of intrusions. Since the law is protective, it oftentimes designates boundaries within which right holders should exercise exclusive right over their innovations and creations. On the other hand, Competition law or Antitrust (as it is known in some jurisdictions) focuses on regulating economic activities for the interest of consumers. It seeks to create a balance between the interest of producers and their influence on the availability of product or service for consumers. However, intellectual property enforcement has the potential of raising anticompetitive concerns by reducing level playing field and promoting market dominance which are against the underlying tenets of competition. The challenge faced by competition regulation bodies is how to minimize the anticompetitive effects of intellectual property rights, while also recognizing their existence and the public benefits they are meant to promote. In the course of this work, it is observed that the perception of the relationship between the two systems of law have gradually evolved to a stage of harmonization. This necessitates the need to assess the impact that intellectual property law has on competition in Nigeria, and the adequacy of our laws in tackling these issues.
This study employs a doctrinal, descriptive, analytical and comparative research approach, with resort to statutes, case law, conventions and treaties, whereas the secondary data include textbooks, conference papers, journal articles and online materials. The relevant laws are identified, analyzed and in appropriate cases compared with the laws in other jurisdictions, and in the end, recommendations are made with a view to improving the position in Nigeria. This study also proffers some solutions to these problems and specifically advocates for the adoption a forward-looking approach, which is that Intellectual Property and Competition Law are both instrumental to economic development. This study is divided into five chapters, the first chapter provides general introduction to the work; the second gives an overview of the law on intellectual property whereas the third chapter assesses competition law, its scope, the competition concerns arising from exercise of intellectual property rights and the impact of intellectual property on competition in Nigeria. The fourth chapter compares Nigeria’s laws on competition with other selected jurisdictions such as United Kingdom, South Africa and Malaysia. The fifth chapter highlights the findings, recommendations and the conclusive opinion.
Subject. This article deals with the issues related to the quality of management decisions and ensuring national security. Objectives. The article aims to conduct a comprehensive study of the differences between subjective and objective perception of reality, and the relationship between cognitive abilities and intellectual potential. Methods. For the study, I used the methods of logical, theoretical, and comparative analyses, and specification, formalization, and modeling. Results. The article offers an author-developed formula for assessing the usefulness of measures in the field of public administration. Conclusions. Decisions should be made on the basis of the utility criterion. The effectiveness of public administration gets enhanced if externalities, that is, external positive and negative effects, are taken into account.
This work addresses the internalization of externalities in energy decision making and in generation expansion planning (GEP). Although the linkage between externalities and energy is well recognized, the issue of the internalization in GEP models and from a sustainability perspective is still far from being fully explored. A critical literature review is presented, including scientific articles published in the period from 2011 to 2021 and selected from scientific databases according to a set of pre-defined keywords. The literature is vast and quite heterogeneous in the models and methods used to deal with these externalities, and therefore a categorization of these studies was attempted. This categorization was based on the methods used, the geographical scope, the externalities included in the planning model and the strategies for their inclusion. As a result, it was possible to perceive that most studies tend to focus on the internalization of externalities related to CO2 and equivalent emissions from a national perspective. Departing from the critical analysis, pathways for future research were presented, highlighting the need to improve the internalization of social externalities to overcome environmental and economic bias, and also highlighting the importance of recognizing regional specificities and development priorities.
This chapter describes the main principles and concepts of taxation. It discusses the definition of taxation and taxes, the main characteristics of a tax system, and the sources of tax legislation. The classification of taxes, taxable events, and the application of taxes on time and the respective jurisdiction, as well as tax enforcement, are also discussed. In addition, several issues specifically related to the structure of taxes are also analyzed, namely: the incidence of the tax, tax exemptions, as well as the concept of taxpayers, tax period, the tax base, and the amount of tax and tax rates. With regard to government, this chapter examines tax expenditures, tax avoidance and evasion, and the tax gap, as well as tax administration and administrative tax procedures. The issue of tax competition and, on the contrary, tax harmonization are discussed, mainly at the OECD and the EU level. The topic of environmental taxes is also covered. Finally, we also analyze the basis of the relationship between ethics and taxation.
Although corporate social responsibility (CSR) aims to improve the positive impacts of companies on society and the environment, most studies focus on the benefits that these practices generate for companies and not on the benefits they generate for the society, which is why this chapter aims to establish if companies assume the costs associated with social responsibility or if, on the contrary, they transfer these to third parties or society as a whole. Based on the above, the theory of social costs was taken as a reference to develop an index that allows determining the relationship between CSR practices and six levels of transfer or externalization of associated CSR costs. The empirical contrast of the index was carried out in a sample of 7233 Colombian companies, due not only to the convenience and timeliness of the information but also to the country’s performance in terms of corporate social responsibility. The findings show that firms have a moderate degree of externalization of their CSR costs and pass these on to different stakeholders, especially the state in general and third parties in particular such as employees, consumers, and suppliers. These results then show the need for the concept and practice of CSR to include more specific guidelines and parameters, among which stands out the proposal to recognize as corporate social responsibility actions only those recorded as a reserve in the accounting books of companies allowing with this measure that CSR actions are assumed directly by the organization that obtains the benefits. By doing this, the associated costs transfer to third parties or society is avoided, making CSR a more responsible practice.
ResearchGate has not been able to resolve any references for this publication.