409 Robertson Hall
Woodrow Wison School
Princeton, NJ 08544
NBER Working Papers and Publications
|March 2006||Environmental Investment and Policy with Distortionary Taxes and Endogenous Growth|
with Don Fullerton: w12070
Recent studies consider public R&D spending that affects abatement knowledge and endogenous growth, distortionary taxes that affect physical and human capital formation, pollution taxes that affect environmental degradation, and regeneration that restores natural capital. Our model combines all of those elements. We show how the combination affects results from each prior model, focusing on two parameters that represent the need for distorting taxes, and the productivity of abatement knowledge relative to pollution. First, either of these two extensions can reverse the prior finding that pollution tax revenue is more than enough to pay for public abatement R&D. Second, tax distortions and externalities substantially alter prior findings that the ratio of public to private capital is based ...
Published: Fullerton, Don and S.R. Kim. “Environmental Investment and Policy with Distortionary Taxes and Endogenous Growth.” Journal of Environmental Economics and Management (September 2008). citation courtesy of