Pollution Tax Encourages Pollution: The Absurdity of Tax Swap
6 Pages Posted: 14 Feb 2016
Date Written: February 13, 2016
Abstract
This paper proves that when a firm has paid pollution tax, it will not clean its pollution any more. Conversely, it proves that when a firm has cleaned up its pollution, it should be exempted from pollution and profit tax. This paper also proves that for pollution tax to be effective, it has to be capital, i.e., the pollution firm has to be shut down. Finally, this paper also disproves the tax swap theory.
Keywords: Pollution, Pigou Tax, Tax Swap
JEL Classification: D62, Q53
Suggested Citation: Suggested Citation
Choi, Hak, Pollution Tax Encourages Pollution: The Absurdity of Tax Swap (February 13, 2016). Available at SSRN: https://ssrn.com/abstract=2732209 or http://dx.doi.org/10.2139/ssrn.2732209
Do you have negative results from your research you’d like to share?
Feedback
Feedback to SSRN
If you need immediate assistance, call 877-SSRNHelp (877 777 6435) in the United States, or +1 212 448 2500 outside of the United States, 8:30AM to 6:00PM U.S. Eastern, Monday - Friday.