RT Journal Article
SR Electronic
T1 Ex Post Evaluation of an Earmarked Tax on Air Pollution
JF Land Economics
JO Land Econ
FD University of Wisconsin Press
SP 68
OP 84
DO 10.3368/le.82.1.68
VO 82
IS 1
A1 Millock, Katrin
A1 Nauges, Céline
YR 2006
UL http://le.uwpress.org/content/82/1/68.abstract
AB In this paper we do an ex post evaluation of the French tax on air pollution. The revenues of this tax were redistributed to polluters in the form of subsidies to abatement technologies, and the policy is a typical example of an earmarked tax. We use a two-stage estimation procedure on an unbalanced panel data set of 226 plants from three industrial sectors that are some of the main contributors to nitrogen oxide and sulfur dioxide emissions. The results indicate that the overall environmental effectiveness of this particular tax/ subsidy scheme can be questioned. (JEL Q53, Q58)