Gunnar S. Eskeland - Taxing Bads by Taxing Goods: Pollution Control With Presumptive Charges (Directions in Development (World Bank))
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Taxing Bads by Taxing Goods: Pollution Control With Presumptive Charges (Directions in Development (World Bank))
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1996 The International Bank for Reconstruction and Development / THE WORLD BANK 1818 H Street, N.W. Washington, D.C. 20433
All rights reserved Manufactured in the United States of America First printing January 1996
The findings, interpretations, and conclusions expressed in this study are entirely those of the authors and should not be attributed in any manner to the World Bank, to its affiliated organizations, or to members of its Board of Executive Directors or the countries they represent.
Gunnar S. Eskeland is senior economist in the World Bank's Policy Research Department, Public Economics Division. Shantayanan Devarajan is chief of that division.
Library of Congress Cataloging-in-Publication Data
Eskeland, Gunnar S. Taxing bads by taxing goods: pollution control with presumptive charges / Gunnar S. Eskeland, Shantayanan Devarajan. p. cm. (Directions in development) Includes bibliographical references. ISBN 0-8213-3457-3 1. Environmental impact chargesMathematical models. 2. PollutionEconomic aspectsMathematical models. 3. Environmental policyEconomic aspectsMathematical models. I. Devarajan, Shantayanan, 1954-. II. Title. III. Series: Directions in development (Washington, D.C.) HJ5316.E578 1996 336.2dc20 95-49782 CIP
Page iii
Contents
Preface
v
1 The Economics of Pollution Control: A Basic Analytical Framework
1
The Textbook Case: An Emission Fee
3
When Monitoring is Costly: Demand Reduction and Technical Controls
3
Presumptive Charges: Problems and Promises
10
Notes
14
2 Pollution from Mobile Sources
15
Using Indirect Instruments: Cleaner Cars, Fewer Trips
15
Market-Based versus Regulatory Demand Management
20
Market-Based and Other Inducements for Cleaner Cars and Fuels
27
Effects on Income Distribution
29
Monitoring Technologies and the Need for Detailed Program Evaluation
30
Notes
33
3 Control of Pollution from Industrial Sources
36
General Economic Policies, Input and Output Taxes, and Regulation
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