ERN: Externalities; Redistributive Effects; Environmental Taxes & Subsidies (Topic)最新文献

{"title":"Greenhouse Gas Emissions and Expected Returns","authors":"Wei Dai, Philipp Meyer-Brauns","doi":"10.2139/ssrn.3714874","DOIUrl":"https://doi.org/10.2139/ssrn.3714874","url":null,"abstract":"We examine how company-level greenhouse gas emissions have been related to company financials as well as the expected returns of the companies’ stocks and bonds from 2009 to 2018. Examining the US, developed ex US, and emerging markets, we do not find emission intensity, emission level, or change in emission level to provide additional information about future profitability beyond what is contained in current profitability. In addition, we do not detect a reliable empirical relation between these emission metrics and average stock returns. Similarly, our analysis of US corporate bonds finds no compelling empirical evidence linking the issuers’ emission metrics to average bond returns. While a growing demand for investing in securities of companies with lower emissions should push their prices up and their expected returns down, the lack of strong empirical evidence of such an effect could be due to small changes in demand over the time period examined or noise in the security returns realized over a relatively short sample period.","PeriodicalId":176966,"journal":{"name":"ERN: Externalities; Redistributive Effects; Environmental Taxes & Subsidies (Topic)","volume":"6 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-10-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"133825939","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Markets for Goods with Externalities","authors":"Zi Yang Kang","doi":"10.2139/ssrn.3586050","DOIUrl":"https://doi.org/10.2139/ssrn.3586050","url":null,"abstract":"I consider the welfare and profit maximization problems in markets with externalities. I show that when externalities depend generally on allocation, a Pigouvian tax is often suboptimal. Instead, the optimal mechanism has a simple form: a finite menu of rationing options with corresponding prices. I derive sufficient conditions for a single price to be optimal. I show that a monopolist may ration less relative to a social planner when externalities are present, in contrast to the standard intuition that non-competitive pricing is indicative of market power. My characterization of optimal mechanisms uses a new methodological tool—the constrained maximum principle—which leverages the combined mathematical theorems of Bauer (1958) and Szapiel (1975). This tool generalizes the concavification technique of Aumann and Maschler (1995) and Kamenica and Gentzkow (2011), and has broad applications in economics.","PeriodicalId":176966,"journal":{"name":"ERN: Externalities; Redistributive Effects; Environmental Taxes & Subsidies (Topic)","volume":"59 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-04-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127306733","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Economic Freedom and the CO2 Kuznets Curve","authors":"C. Bjørnskov","doi":"10.2139/ssrn.3508271","DOIUrl":"https://doi.org/10.2139/ssrn.3508271","url":null,"abstract":"Politicians and international organisations advocate for increased regulation and government control of industry in order to handle climate change and reduce overall greenhouse gas emissions. However, it remains an open question how economic freedom is associated with environmental damage and whether deregulation is harmful to the environment or incentivises the use of green technology. On one hand, more government control and regulation may force firms and individuals to reduce their emissions. On the other hand, more economic freedom is likely to enable innovation and the adoption of green technological development. In this paper, I therefore combine data on growth in greenhouse gas emissions and GDP per capita with the Fraser Institute’s Economic Freedom of the World indices in order to test if economic freedom affects emissions. I do so in the context of estimating a standard Environmental Kuznets Curve in which economic freedom can both reduce overall levels as well as shift the shape of the curve. The results suggest that economic freedom reduces greenhouse gas emissions but also shifts the top point of the Kuznets Curve to the left. Part of this effect may be due to the effect of economic freedom on the adoption of renewable energy.","PeriodicalId":176966,"journal":{"name":"ERN: Externalities; Redistributive Effects; Environmental Taxes & Subsidies (Topic)","volume":"4 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-01-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"125390266","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Energy-Switching Using Lévy Processes - An Application to Canadian and North American Data","authors":"Alexis Arrigoni, Wei-Liang Lu, A. Swishchuk, Stéphane Goutte","doi":"10.2139/ssrn.3408174","DOIUrl":"https://doi.org/10.2139/ssrn.3408174","url":null,"abstract":"The Paris agreement in 2016 marks a global effort to limit the increase in temperature. In that spirit, the Federal Government of Canada introduced a carbon tax to reduce greenhouse gas emissions. The main goal of this paper is to define the correct approach to carbon pricing. Following the method, introduce by Goutte and Chevalier (2015), we define the carbon price as the necessary tax to incite electricity producers to switch from coal to natural gas. The novelty of this paper is that we use this method for Alberta and North America. In addition, we consider the case of switching from natural gas to wind as a potential new approach to carbon pricing. After reviewing the two methods, we model prices under three stochastic procedures: Levy Normal Inverse Gaussian (NIG), Levy Normal and Heston model. Finally, we generalize our empirical technique to oil, natural gas and coal individually. The main finding of this article is that the Levy NIG outperforms the Levy Normal and Heston as it is able to take into account the jumpy and volatile nature of energy prices.","PeriodicalId":176966,"journal":{"name":"ERN: Externalities; Redistributive Effects; Environmental Taxes & Subsidies (Topic)","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-06-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"125772273","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Should Pollution Taxes Be Targeted at Income Redistribution?","authors":"B. Jacobs, Rick van der Ploeg","doi":"10.2139/ssrn.3021768","DOIUrl":"https://doi.org/10.2139/ssrn.3021768","url":null,"abstract":"This paper analyses optimal corrective taxation and optimal income redistribution. Under general utility functions, the Pigouvian pollution tax is higher if pollution damages disproportionally hurt the poor due to equity weighting of pollution damages. Moreover, optimal pollution taxes should be set below the Pigouvian tax if the poor spend a disproportionate fraction of their income on polluting goods. However, if preferences for commodities are of the Gorman (1961) polar form, optimal pollution taxes should follow the first-best rule for the Pigouvian corrective tax even if the government wants to redistribute income and the poor spend a disproportional part of their income on polluting goods. The often-used quasi-linear, CES and Stone-Geary utility functions all belong to the Gorman polar class. If preferences are Gorman polar, and if pollution taxes are not optimized, Pareto-improving green tax reforms exist that move the pollution tax closer to the Pigouvian tax. Simulations demonstrate that optimal corrective taxes should be Pigouvian if the demand for polluting goods is derived from a LES demand system, but deviate from the Pigouvian taxes if demand for polluting goods demand is derived from a PIGLOG demand system.","PeriodicalId":176966,"journal":{"name":"ERN: Externalities; Redistributive Effects; Environmental Taxes & Subsidies (Topic)","volume":"27 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2017-07-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"125170664","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Hybrid Incentives: Carrots, Sticks, or Carrots Which Become Sticks?","authors":"Benjamin Shmueli","doi":"10.2139/ssrn.2977408","DOIUrl":"https://doi.org/10.2139/ssrn.2977408","url":null,"abstract":"Various incentives may be used in order to cause a person to desist from an activity that creates negative externalities. It is possible, naturally, to use a stick and to apply an economic sanction in order to incentivize them to desist from that activity. It is also possible to use a carrot, i.e., to grant them a financial prize if they desist from the activity. Each of these incentives has advantages and disadvantages. Literature and practice are familiar with various combinations of sticks and carrots. In most cases, the mechanism is “horizontal”, e.g. using carrots with respect to certain parts of the population, and sticks against other parts. The Article presents a novel, vertical, sequential mechanism, in the form of a “game” played in two consecutive stages that are connected to each other, that trap the person who perpetrated a negative action within the mechanism, with no possible way out. At the center of the first stage of the vertical mechanism stands a carrot – a reward or a positive incentive – which is combined with a certain social sanction (shaming). At the center of the second stage, which is activated only if the implementation of the first stage did not meet with success, stands a stick – a punishment or a negative incentive. The objective will be to incentivize a person to engage in fruitful negotiations to end the harmful activity at the pre-mechanism stage, for after the mechanism begins operating and as more time passes, he will only lose. For this purpose, an illustration will be offered of the negative social behavior of one-sided refusal to give or accept the Jewish divorce bill in the Jewish sector the world over, in a reality in which it is not possible under religious law to compel a refuser to give or accept that bill, namely, the intractable agunah problem. The mechanism will be built primarily on the basis of a few theories from the field of law and economics: reversible rewards, dual-chooser rules, and modular liability rules. The main argument will be that the use of a multi-part vertical incentives mechanism increases efficiency at minimal additional cost; it overcomes a moral problem of “rewarding the sinner” by giving him a carrot and combines in optimal fashion the advantages entailed by activating the sticks and the carrots, and at the same time – insofar as possible – nullifies most of the disadvantages of each of them. \u0000It is possible to extrapolate from the specific to the general. From this aspect, the Article has several contributions to make. First, the example that will be discussed – that of refusal to divorce – is universal, and it is relevant anywhere in the world where there are Jews. Second, the Article has a contribution to make to legal and social sciences literature on the subject of incentives in general, and sticks and carrots in particular. Third, the Article will present a unique case of integration of a social sanction within a legal mechanism. Fourth, the Article might constitute a mod","PeriodicalId":176966,"journal":{"name":"ERN: Externalities; Redistributive Effects; Environmental Taxes & Subsidies (Topic)","volume":"5 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2017-05-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"133307590","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Transparency Diminishes Framing-Effects in Voting on Redistribution: Some Experimental Evidence","authors":"Fabian Paetzel, J. Lorenz, M. Tepe","doi":"10.2139/ssrn.2965442","DOIUrl":"https://doi.org/10.2139/ssrn.2965442","url":null,"abstract":"This study analyzes whether enabling people to get informed about redistributive consequences is an effective measure to prevent equivalence framing in the domain of voting on redistribution. Utilizing the redistribution mechanism of the Meltzer-Richard model, an equivalent frame is induced by letting subjects vote either on a proportional tax rate or an outcome equivalent minimum net income. In a series of laboratory experiments, we find that framing effects both on the individually preferred and collectively agreed level of redistribution are tremendously strong if the information tool is not available (low transparency condition). Once subjects have access to the information tool (high transparency condition), the framing effect on individually preferred tax rates is significantly reduced, and after group communication, the framing effect is washed out from the collective decision. High transparency increases redistribution if subjects have to set a redistributive tax rate and lowers redistribution if subjects have to set a minimal income. Thus, the availability of the information tool has an asymmetric effect on the level of redistribution.","PeriodicalId":176966,"journal":{"name":"ERN: Externalities; Redistributive Effects; Environmental Taxes & Subsidies (Topic)","volume":"122 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2017-05-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"134315104","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Skewness, Tax Progression, and Demand for Redistribution: Evidence from the UK","authors":"K. Pogorelskiy, Stefan Traub","doi":"10.2139/ssrn.2958128","DOIUrl":"https://doi.org/10.2139/ssrn.2958128","url":null,"abstract":"We introduce a skewness-based approach to measure tax progression and demand for redistribution. Adapting a novel, quantile-based statistical measure of skewness to right-skewed income distributions, we uncover its political economy foundation, by simultaneously relating the same measure to the classical model of income redistribution due to Meltzer and Richard (1981), to the Prospect Of Upward Mobility (POUM) mechanism due to Benabou and Ok (2001), and to the progressivity of a tax schedule. In an empirical analysis of UK income distributions in 1979 { 2013, we find that skewness has increased over time, with the rich moving further away from the median. While the magnitude of the increase has remained small enough so that observed redistribution (or lack thereof ) could be consistent with POUM hypothesis, more recent periods show an increase in tax progression.","PeriodicalId":176966,"journal":{"name":"ERN: Externalities; Redistributive Effects; Environmental Taxes & Subsidies (Topic)","volume":"102 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2017-04-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"134009543","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Inelastic Supply of Fossil Energy and Competing Environmental Policies","authors":"Sung-gyun Hong, Seung-Gyu Sim","doi":"10.2139/ssrn.2896540","DOIUrl":"https://doi.org/10.2139/ssrn.2896540","url":null,"abstract":"The inelastic supply of fossil energy in the international input market precipitates failure of Pigouvian taxation consequent to competition among governments, as imposition of an environmental tax increases (decreases) the marginal cost of domestic (foreign) firms. This paper demonstrates that unless the supply of fossil energy is perfectly elastic, cap-and-trade outperforms Pigouvian taxation in terms of the domestic welfare of adopting countries, and global welfare is maximized when all countries implement the alternative scheme. We further demonstrate that the linkage of permit markets, when the energy supply is sufficiently inelastic, improves global welfare.","PeriodicalId":176966,"journal":{"name":"ERN: Externalities; Redistributive Effects; Environmental Taxes & Subsidies (Topic)","volume":"19 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2017-02-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"121686805","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Trade in the Telecoupling Framework","authors":"Hang Xiong, J. Millington, Wei Xu","doi":"10.2139/ssrn.2930562","DOIUrl":"https://doi.org/10.2139/ssrn.2930562","url":null,"abstract":"As a conceptual framework for understanding contemporary sustainability challenges, telecoupling emphasises the importance of socioeconomic and environmental interactions over long distances. These long-distance interactions can occur through multiple human activities. Here we focus on international trade, a major channel of telecoupling flows, and in particular on the international trade of metals. We present a conceptual model to show how trade can be viewed through the telecoupling framework. We then use world input-output tables to quantitatively examine how countries contribute to both economic and environmental flows through trade of metals, but also how that contribution varies depending on their position in the global value chain of contemporary international trade. This analysis is built on recently-developed techniques for decomposing gross exports of physical products and embedded environmental assets as well as previous methods for valuing environmental assets. We make comparisons between countries' contributions to flows of economic value vs embedded greenhouse gas emissions, but also examine contributions beyond total volumes of trade and bilateral trade. Specifically, we quantify the economic and environmental ‘spillover’ effects that occur in contemporary international trade due to the global value chain in which flows of intermediate goods form components in other subsequently traded goods. We interpret differences between countries' contributions to the flows of economic value versus embedded environmental assets as being related to the intensity and efficiency of resource use during production. In turn, differences in contributions to direct trade flows versus spillover flows are related to their positions in the global value chain. Subsequently, we discuss other elements of the telecoupling framework in trade – agents, causes and effects. Quantitatively incorporating these telecoupling framework elements alongside spillover flows will enable investigation of dynamics and relationships that traditional trade theories, data and models do not currently account for well.","PeriodicalId":176966,"journal":{"name":"ERN: Externalities; Redistributive Effects; Environmental Taxes & Subsidies (Topic)","volume":"101 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2017-01-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"132605351","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}