Centralized versus decentralized taxation of mobile polluting firms

Citation
Ga. Tanguay et N. Marceau, Centralized versus decentralized taxation of mobile polluting firms, RES ENER EC, 23(4), 2001, pp. 327-341
Citations number
17
Language
INGLESE
art.tipo
Article
Categorie Soggetti
Economics
Journal title
RESOURCE AND ENERGY ECONOMICS
ISSN journal
0928-7655 → ACNP
Volume
23
Issue
4
Year of publication
2001
Pages
327 - 341
Database
ISI
SICI code
0928-7655(200110)23:4<327:CVDTOM>2.0.ZU;2-5
Abstract
We consider a world in which a mobile polluting firm must locate in one of two regions. The regions differ in two dimensions: their marginal cost of p ollution and the production cost of the firm. It is shown that under incomp lete information on regional marginal costs of pollution, fiscal competitio n may lead to the sub-optimal location of the firm. We also show that under incomplete information, a sub-optimal location is less likely under centra lized than under decentralized taxation. (C) 2001 Elsevier Science B.V. All rights reserved.