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3 edition of Use of taxes, subsidies, and regulations for pollution abatement found in the catalog.

Use of taxes, subsidies, and regulations for pollution abatement

Hugh Holleman Macaulay

Use of taxes, subsidies, and regulations for pollution abatement

by Hugh Holleman Macaulay

  • 262 Want to read
  • 22 Currently reading

Published by Water Resources Research Institute, Clemson University in Clemson, S.C .
Written in English

    Subjects:
  • Pollution -- Economic aspects.

  • Edition Notes

    Statementby Hugh H. Macaulay.
    SeriesClemson University. Water Resources Research Institute. Report, no. 16, Report (Clemson University. Water Resources Research Institute) ;, no. 16.
    Classifications
    LC ClassificationsHD1694.S6 C55 no. 16, TD177 C55 no. 16
    The Physical Object
    Paginationiii, 81 p.
    Number of Pages81
    ID Numbers
    Open LibraryOL4072643M
    LC Control Number79636869

    Tax Abatements. If the proper procedures are followed, qualifying industries may abate all state and the local non-educational portion of construction related transaction (sales and use) taxes associated with constructing and equipping a qualifying project.   A gasoline tax is an example of a Pigouvian tax. It raises the driver's cost to cover the negative externalities created by driving automobiles. In the United States, the federal gas tax was $ per gallon in   The average state gas tax was $ per gallon. The revenue goes into the federal Highway Trust Fund to pay for.

      -In the form of taxes and subsidies. Example: Pollution taxes on a polluting commodity either through its production or consumption, or on a polluting input. 7 8. MCA MD B O E* Em R S MCA (Marginal Cost of abating pollution) MD (Marginal damage cost) E t 8 9. for the control of air, water, or land pollution that was subject to a tax abatement agreement executed before January 1, or to a motor vehicle, except for eligible dedicated-purpose vehicles that are used solely for pollution control. Length of Use Determination A use determination is valid as long as the property/equipment.

    Two major types of subsidies: Abatement equipment subsidies Pollution reduction subsidies Defined as a payment aimed at lowering the cost of abatement technology Goal is to internalize the positive externality associated with the consumption of abatement activities If the subsidy (s) equals the marginal external benefit (MEB) at Q E, it.   We show that firms’ strategic tradeoffs between output reduction and pollution abatement, not identified before in the literature, drive industry profits, consumer surplus and welfare. We model two popular regulations - Cap-and-Trade and Taxes. Under imperfect competition, well-chosen regulations can simultaneously improve industry profits.


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Use of taxes, subsidies, and regulations for pollution abatement by Hugh Holleman Macaulay Download PDF EPUB FB2

Additional Physical Format: Online version: Macaulay, Hugh Holleman, Use of taxes, subsidies, and regulations for pollution abatement. Clemson, S.C., Water. This paper first shows that subsidies to the input into pollution abatement are inefficient when a Pigouvian pollution tax is available.

Using a model where the government receives political contributions from environmental and industry lobby groups, it then explains the use of pollution abatement subsidies in environmental policy as primarily being tools for by: Incentive based pollution control regulations include.

ons taxes. ent technology subsidies. ble pollution permit programs. of the above. Emissions charges. t to internalize the social damage caused by polluters. polluters pay for their use of environmental services. polluters to determine the.

The pollution abatement subsidy and pollution tax are determined in political equilibrium. The equilibrium subsidy rate is shown to depend on the subsidy elasticities of pollution and abatement. There have presently some subsidies for pollution abatement, in the form of tax credits for individuals who buy fuel-efficient hybrid vehicles.

Governments have also subsidized- usually through a reduction in tax liability- whole industries such as the bio-fuel manufacturers. So there is some basis for the use of subsidies for pollution abatement. This paper establishes a cross-industry pollution externality model. To explain a benevolent government, it may be possible to tax part of the welfare gains and use the revenue to compensate the affected polluted industry for the damage cost, thereby improving welfare.

We show that the social welfare under emission tax with production subsidy is higher than the results of emission tax without. This paper considers the combination of pollution taxes and abatement subsidies when some polluting firms procure their abatement goods and services from an oligopolistic eco-industry.

The regulator must here cope with two simultaneous price distortions: one that comes from pollution and the other which is caused by the eco-industry’s market power. Replace with: If the goal is for firms to have incentives to continuously reduce pollution output, the least effective form of regulation is ___.

subsidies for emitting less pollution B. taxes on each unit of pollution emitted C. tax incentives on innovative pollution saving technology D. command and control regulation, such as pollution caps.

This paper considers the combination of pollution taxes and abatement subsidies when some polluting firms procure their abatement goods and services from an oligopolistic eco-industry. The regulator must here cope with two simultaneous price distortions: one that comes from pollution and the other which is caused by the eco-industry's market power.

Roberts and Spence () introduce a hybrid policy of permits, subsidies and taxes when the regulator does not know the abatement costs of firms. If a firm abates more than the level of its permit, the firm gets a subsidy, and if a firm pollutes more than its permit, the firm pays a tax.

renewable energy or pollution abatement. Like other subsidies, however, tax expenditures have a number of important limitations: Since it is difficult to subsidise all the environmentally beneficial alternatives to the harmful activity, tax subsidies inevitably involve “picking winners”, which may prejudice other good alternatives.

For. advantages of using “market mechanisms” such as emissions taxes or tradable pollution permits compared with the traditional approach of direct “command-and-control” regulations requiring the use of particular production or abatement technologies, or setting limits on emissions.

Sandmo (). Government subsidies help an industry by paying part of the cost of production, offering tax credits, or paying part of the cost a consumer would pay. This paper develops a positive theory of pollution taxation by a federal authority when pollution abatement subsidies are used by local governments.

Environmental and industry lobby groups influence governments with campaign contributions. First, pollution may increase in the pollution tax because the abatement subsidy increases (decreases) with the tax, and pollution increases (decreases) in.

They include: green taxes, tax incentives, tradable permits, and subsidies. The difference between economic instruments and traditional regulatory CAC measures is that instruments use market forces to induce behavioural change, while CAC measures dictate how polluters must control specific activities.

Studies and real-world experience show that. At this point its total pollution-related costs will consist of (a + b) worth of abatement costs and a tax bill of (c + d + e).

If the polluter can lower its marginal abatement cost curve to MAC2 through the R&D activities, it would then reduce its emissions to 15 tonnes.

At this point it would pay (b + d) in abatement costs and e in taxes. A popular example of a Pigovian-style tax is a tax on pollution. Pollution from a factory creates a negative externality because impacted third parties bear part of the cost of pollution.

other taxes and subsidies distort incentives and move economy away from the social optimum. firms with the lowest abatement costs reduce pollution the most.

tax burden. a pollution tax is efficient. firms with high abatement costs have greater willingness to pay tax. corrective taxes vs. regulations.

The benefits usually apply to property or sales/use taxes but can apply to income tax in a smaller number of states. Air and water pollution equipment is commonly given tax benefits.

However, New York offers a property tax exemption for industrial waste treatment facilities, and Ohio offers benefits for noise abatement equipment.

The Tax Relief for Pollution Control Property Program (Prop 2) is responsible for determining whether a facility uses certain property or equipment, in whole or in part, for pollution control (referred to as a use determination). Application forms are provided by the TCEQ for applicants to request a use determination.

Applicants that receive a positive use determination from the TCEQ may. The Report finds two general trends concerning the use of incentives: Increasing diversity of economic incentives used by EPA--Although historically EPA has relied on regulations to reduce pollution and improve the environment, it has begun to use a wide variety of economic incentive mechanisms in recent years.•“Recycling only to remaining firms” is like a subsidy to not exit.

We don’t want that distortion. •In this example, the old inefficient firm is creating negative value. It only stays in business to claim the recycled tax revenue.

•Much of improving energy efficiency and pollution .The incentives may include corporate income tax credits (e.g., investment tax credits), sales and use tax exemptions, property tax exemptions, and in some cases, cash grants.

Qualification for these incentives is typically based on the type of business activity and/or industry within the state.