Please use this identifier to cite or link to this item: http://hdl.handle.net/1942/7023
Title: Taxes, tradable rights and transaction costs
Authors: CRALS, Evy 
VEREECK, Lode 
Issue Date: 2005
Publisher: Springer
Source: European journal of law and economics, 20(2). p. 199-223
Abstract: With respect to market-based policy approaches, it is a widely held view that corrective taxation entails substantial, though far fewer transaction costs than tradable permit systems. This conclusion only holds if set-up costs are singled out. This paper explores all relevant market, managerial and political transaction costs associated with environmental taxes and tradable emission rights. It is argued that the prevalence of transaction costs is largely dependent on the design of the policy instrument, respectively the tax base or the trading regime chosen. Comparative analysis further shows that a cap-and-trade program of emission permits distributed for free, traded on a brokered market and monitored upstream is not only more effective, but also likely to entail fewer transaction costs than environmental taxes. Any attempt, in turn, to save the huge information, enforcement and compliance costs incurred by corrective taxation impairs its efficacy by severing the link between the environmental externality and the tax base.
Document URI: http://hdl.handle.net/1942/7023
ISSN: 0929-1261
e-ISSN: 1572-9990
DOI: 10.1007/s10657-005-1737-y
Category: A1
Type: Journal Contribution
Validations: vabb 2010
Appears in Collections:Research publications

Show full item record

SCOPUSTM   
Citations

16
checked on Sep 3, 2020

Page view(s)

42
checked on May 20, 2022

Google ScholarTM

Check

Altmetric


Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.