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Cited by 528

The DOI matches its Crossref record; 34 of the 34 references it cites were found in a registry or an index.

The cost-effectiveness of alternative instruments for environmental protection in a second-best setting

Open access
Goulder, Lawrence H., Parry, Ian W.H., Williams III, Roberton C., Burtraw, Dallas·1999·Journal of Public Economics

Abstract

This paper employs analytical and numerical general equilibrium models to examine the significance of pre-existing factor taxes for the costs of pollution reduction under a wide range of environmental policy instruments. Pre-existing taxes imply significantly higher abatement costs for every instrument considered, but the cost-impact of such taxes differs sharply across instruments. Prior taxes can eliminate the cost-advantage of market-based instruments (emissions taxes and permits) over technology mandates or performance standards, particularly if the former policies fail to generate revenues and use the revenues to finance cuts in the prior distortionary taxes. The cost differences between instruments are highly sensitive to the extent of pollution abatement: for most policies, abatement costs converge to the same value as pollution abatement approaches 100 percent.

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Citations

Cites

Show all 34 references

Research works printed but not linked: 11

  1. Ballard, 1993, The marginal efficiency effects of taxes and subsidies in the presence of externalities: a computational general equilibrium approach, Journal of Public Economics, 52, 199, 10.1016/0047-2727(93)90020-T · doi:10.1016/0047-2727(93)90020-t
  2. Bovenberg, A.L., Goulder, L.H., 1997. Environmental taxation. In: Auerbach, A., Feldstein, M. (Eds.), Handbook of Public Economics, 2nd ed. North-Holland, New York (forthcoming).
  3. Deaton, 1981, Optimal taxes and the structure of preferences, Econometrica, 49, 1245, 10.2307/1912753 · doi:10.2307/1912753
  4. Espinosa, 1995, Measuring the environmental consequences of trade policy: a nonmarket CGE analysis, American Journal of Agricultural Economics, 77, 772, 10.2307/1243250 · doi:10.2307/1243250
  5. Fullerton, D., Metcalf, G., 1997. Environmental controls, scarcity rents, and pre-existing distortions. NBER Working Paper 6091, Cambridge, MA, July. · doi:10.3386/w6091
  6. Hakonsen, 1998, An investigation into alternative representations of the marginal cost of public funds, International Tax and Public Finance, 5, 329, 10.1023/A:1008686227749 · doi:10.1023/a:1008686227749
  7. Lester, J.A., Dodds, D.E., Zerbe, R.O. Jr., 1997. Environmental Economics and Policy. Addison-Wesley, New York.
  8. Nichols, A.L., 1984. Targeting Economic Incentives for Environmental Protection. MIT Press, Cambridge, MA.
  9. Oates, 1995, Green taxes: can we protect the environment and improve the tax system at the same time?, Southern Economic Journal, 61, 914, 10.2307/1060731 · doi:10.2307/1060731
  10. Stavins, R. (Ed.), 1991. Project 88 – Round II, incentives for action: designing market-based environmental strategies. Public policy study sponsored by Senators Timothy Wirth and John Heinz, Washington, DC, May.
  11. Williams, R.C., 1998a. Revisiting the cost of protectionism: the role of tax distortions in the labor market. Journal of International Economics (forthcoming). · doi:10.2139/ssrn.59829

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Metadata

Authors
Goulder, L. H., Parry, I. W. H., Williams III, R. C., & Burtraw, D.
Venue
Journal of Public Economics
Publisher
Elsevier BV
Published
1999-06
Volume
72
Issue
3
Pages
329-360
ISSN
0047-2727 (ISSN-L)
OpenAlex
W3122106470
Cited by
528
References
34
FWCI
42.71
Type
journal article
Language
en
Open access
hybrid
Licence

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CoChat. (2026). Citation check: The cost-effectiveness of alternative instruments for environmental protection in a second-best setting. https://app.cochat.ai/papers/10.1016/s0047-2727(98)00109-1
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Goulder, L. H., Parry, I. W. H., Williams III, R. C., & Burtraw, D. (1999). The cost-effectiveness of alternative instruments for environmental protection in a second-best setting. Journal of Public Economics. https://doi.org/10.1016/s0047-2727(98)00109-1

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