Optimal fiscal policy with environmental tax and pollution abatement spending in a model with utility-enhancing environmental quality: lessons from Bulgaria

Vasilev, Aleksandar (2019) Optimal fiscal policy with environmental tax and pollution abatement spending in a model with utility-enhancing environmental quality: lessons from Bulgaria. Macroeconomics and Finance in Emerging Market Economies, 12 (1). pp. 24-35. ISSN 1752-0843

Full content URL: http://doi.org/10.1080/17520843.2018.1522360

Documents
Optimal fiscal policy with environmental tax and pollution abatement spending in a model with utility-enhancing environmental quality: lessons from Bulgaria
Publishers PDF

Request a copy
Optimal fiscal policy with environmental tax and pollution abatement spending in a model with utility-enhancing environmental quality: lessons from Bulgaria
Accepted Manuscript

Request a copy
[img] PDF
optimal_env_policy.pdf - Whole Document
Restricted to Repository staff only

1MB
[img] PDF
env_RBC_Ramsey_MFEME_accepted (003).pdf - Whole Document
Restricted to Repository staff only until 4 June 2020.

266kB
Item Type:Article
Item Status:Live Archive

Abstract

This paper characterized optimal fiscal policy in the presence of
pollution, and evaluated it relative to the observed one in Bulgaria.
To this end, a dynamic general-equilibrium model is calibrated to
Bulgarian data. The main findings are: (i) The optimal steady-state
income tax rate is zero; (ii) the benevolent Ramsey planner provides
20% higher utility-enhancing environmental quality; (iii) the
optimal level of carbon taxes is almost three times higher, and the
optimal level of abatement spending is six times higher; (iv) the
optimal steady-state consumption tax is twice lower.

Keywords:Ramsey policy, pollution, environmental quality, environmental tax
Subjects:L Social studies > L217 Environmentalism
L Social studies > L130 Macroeconomics
Divisions:Lincoln International Business School
ID Code:35589
Deposited On:12 Apr 2019 13:29

Repository Staff Only: item control page