When redistribution makes personalized pricing of externalities useless
Marc Fleurbaey
(1, 2)
,
Ulrike Kornek
(3)
Marc Fleurbaey
- Fonction : Auteur
- PersonId : 741339
- IdHAL : marc-fleurbaey
- ORCID : 0000-0002-5342-8065
- IdRef : 029286719
Ulrike Kornek
- Fonction : Auteur
- PersonId : 1219972
- ORCID : 0000-0001-6367-6241
Résumé
We consider a standard optimal taxation framework in which consumers' preferences are separable in consumption and labor and identical over consumption, but are affected by consumption externalities. For every nonlinear, income-dependent pricing of goods there is a linear pricing scheme, combined with an adjusted income tax schedule, that leaves all consumers equally well-off and weakly increases the government's budget. The result depends on whether a linear pricing scheme exists that keeps the aggregate amount of consumption at its initial level observed under nonlinear pricing. We provide sufficient conditions for the assumption to hold. If adjusting the income tax rate is not available, personalized prices for an externality can enhance social welfare if they are redistributive, that is, favor consumers with a larger marginal social value of income.
Domaines
Economies et financesFormat du dépôt | Notice |
---|---|
Type de dépôt | Article dans une revue |
Titre |
en
When redistribution makes personalized pricing of externalities useless
|
Résumé |
en
We consider a standard optimal taxation framework in which consumers' preferences are separable in consumption and labor and identical over consumption, but are affected by consumption externalities. For every nonlinear, income-dependent pricing of goods there is a linear pricing scheme, combined with an adjusted income tax schedule, that leaves all consumers equally well-off and weakly increases the government's budget. The result depends on whether a linear pricing scheme exists that keeps the aggregate amount of consumption at its initial level observed under nonlinear pricing. We provide sufficient conditions for the assumption to hold. If adjusting the income tax rate is not available, personalized prices for an externality can enhance social welfare if they are redistributive, that is, favor consumers with a larger marginal social value of income.
|
Auteur(s) |
Marc Fleurbaey
1, 2
, Ulrike Kornek
3
1
PSE -
Paris School of Economics
( 301309 )
- 48 boulevard Jourdan 75014 Paris
- France
2
PJSE -
Paris Jourdan Sciences Economiques
( 578027 )
- 48 boulevard Jourdan 75014 Paris
- France
3
CAU -
Christian-Albrechts-Universität zu Kiel = Christian-Albrechts University of Kiel = Université Christian-Albrechts de Kiel
( 462123 )
- Christian-Albrechts-Platz 4, 24118 Kiel, Germany
- Allemagne
|
Langue du document |
Anglais
|
Licence |
Paternité
|
Nom de la revue |
|
Vulgarisation |
Non
|
Public visé |
Scientifique
|
Comité de lecture |
Oui
|
Audience |
Internationale
|
Date de publication |
2021-04
|
Volume |
23
|
Numéro |
2
|
Page/Identifiant |
363-375
|
Domaine(s) |
|
Projet(s) ANR |
|
DOI | 10.1111/jpet.12505 |
UT key WOS | 000616048400001 |
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