BC3. Basque centre for climate change – Klima aldaketa ikergai

Seminar / Mintegia / Seminario

Lecturer:
Prof. Dr. Christoph Böhringer (Chair of Economic Policy Department of Economics, University of Oldenburg)

Abstract:

We show that imposition of a state-level environmental tax in a federation crowds out preexisting federal taxes. We explain how this vertical fiscal externality can lead unilateral state-level environmental policy to generate a welfare gain in the implementing state, at the expense of other states. Using a computable general equilibrium model of the Canadian federation, we show that vertical fiscal externalities can be the major determinant of the welfare change following environmental policy implementation by a state government. Our numerical simulations indicate that - as a consequence of vertical fiscal externalities - state governments can reduce greenhouse gas emissions by over 20 percent without any net cost to themselves.

If you are interested in attending the Seminar, please register yourself clicking here

27^th November, 12:00-13:00 BC3 offices 

* The Seminar will be in English. / Mintegia ingelesez burutuko da. / El seminario se realizará en inglés.