Equal tax and equal compensation : a fair and efficient way to save climate
Date
01/09/2024Metadata
Show full item recordAbstract
We show that “equal tax and equal compensation” (T&C) is fair as justified by the two fairness principles. It differs from any Pigouvian tax with fixed lump-sum payments and can motivate every country to maximize world welfare. It benefits countries with current per capita emissions lower than the world average and would benefit every country when compared with a fair benchmark where emissions are duly penalized and compensated. Subsidizing emission reduction by poll tax is Pareto efficient and Pareto improving over status quo, but unfair. An imperfect T&C with a sub-optimal tax or pyramid taxes can still benefit the world.
Citation
Jin , J Y & Kobayashi , S 2024 , ' Equal tax and equal compensation : a fair and efficient way to save climate ' , Research in Economics , vol. 78 , no. 3 , 100965 . https://doi.org/10.1016/j.rie.2024.100965
Publication
Research in Economics
Status
Peer reviewed
ISSN
1090-9443Type
Journal article
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