RT Journal Article
SR Electronic
T1 Efficiency and Equity of an Outdoor Recreation Equipment Tax to Fund Public Lands
JF Land Economics
JO Land Econ
FD University of Wisconsin Press
SP 520
OP 536
DO 10.3368/le.98.3.090821-0108
VO 98
IS 3
A1 Margaret Walls
A1 Matthew Ashenfarb
YR 2022
UL http://le.uwpress.org/content/98/3/520.abstract
AB We analyze the efficiency and equity implications of a federal excise tax on outdoor recreation equipment for funding U.S. public lands. Using microdata on consumer expenditure, we estimate a two-stage quadratic almost ideal demand system for recreation equipment and simulate the effects of a 5% tax. The tax generates a modest welfare loss as a share of tax revenues raised: $0.04 for every $1 of revenue. It is approximately proportional to income across the entire income distribution, but households in the lowest-income quintile pay more as a share of income than do households in the other four income quintiles.