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Implementing environmental taxes on intemediate goods in open economies

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dc.contributor.author Poterba, James M. en_US
dc.contributor.author Rotemberg, Julio en_US
dc.contributor.other Massachusetts Institute of Technology. Center for Energy and Environmental Policy Research. en_US
dc.date.accessioned 2009-12-15T23:58:06Z
dc.date.available 2009-12-15T23:58:06Z
dc.date.issued 1994 en_US
dc.identifier 94006 en_US
dc.identifier.uri http://hdl.handle.net/1721.1/50185
dc.description.abstract Many proposed and actual environmental taxes are taxes on intermediate goods. These goods, such as fossil fuels, are typically tradable, and they are also used in the production of many tradable final goods. How should imports of intermediate and final goods be taxed if the government does not want environmental tax policy to alter the competitive positions of domestic and foreign producers? Not surprisingly, imports of the intermediate goods itself can be taxed at the same rate as domestic intermediate goods. Imports of final goods that are produced using these intermediate goods can be taxed based on their intermediate good intensity, provided there is no joint production. Under conditions of joint production, however, such as those that characterize the petroleum refining and petrochemical industries, it is difficult to define the intermediate goods intensity of any single product. Arbitrary assignments of intermediate good content, for example on the basis of output weight or value, are unlikely to preserve the competitive positions of domestic and foreign producers. en_US
dc.description.sponsorship Supported by the Institute for Policy Reform, the MIT Center for Energy and Environmental Policy Research, the National Science Foundation, and the Center for Advanced Study in Behavioral Sciences. en_US
dc.format.extent 23 p en_US
dc.publisher MIT Center for Energy and Environmental Policy Research en_US
dc.relation.ispartofseries MIT-CEEPR (Series) ; 94-006WP. en_US
dc.title Implementing environmental taxes on intemediate goods in open economies en_US
dc.type Working Paper en_US
dc.identifier.oclc 35719457 en_US


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