Central Issues in Contemporary Economic Theory and Policy
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1 Central Issues in Contemporary Economic Theory and Policy General Editor: Gustavo Piga, Managing Editor, Rivista di Politica Economica, Rome, Italy Published titles include: Mario Baldassarri, John McCallum and Robert A. Mundell (editors) DEBT, DEFICIT AND ECONOMIC PERFORMANCE Mario Baldassarri (editor) HOW TO REDUCE UNEMPLOYMENT IN EUROPE Mario Baldassarri (editor) THE NEW WELFARE Unemployment and Social Security in Europe Mario Baldassarri, Michele Bagella and Luigi Paganetto (editors) FINANCIAL MARKETS Imperfect Information and Risk Management Mario Baldassarri and Bruno Chiarini (editors) STUDIES IN LABOUR MARKETS AND INDUSTRIAL RELATIONS Mario Baldassarri and Pierluigi Ciocca (editors) ROOTS OF THE ITALIAN SCHOOL OF ECONOMICS AND FINANCE From Ferrara (1857) to Einaudi (1944) (three volumes) Mario Baldassarri, Cesare Imbriani and Dominick Salvatore (editors) THE INTERNATIONAL SYSTEM BETWEEN NEW INTEGRATION AND NEO-PROTECTIONISM Mario Baldassarri and Luca Lambertini (editors) ANTITRUST, REGULATION AND COMPETITION Mario Baldassarri, Luigi Paganetto and Edmund S. Phelps (editors) EQUITY, EFFICIENCY AND GROWTH The Future of the Welfare State Mario Baldassarri, Luigi Paganetto and Edmund S. Phelps (editors) THE 1990s SLUMP Causes and Cures Mario Baldassarri, Luigi Paganetto and Edmund S. Phelps (editors) INTERNATIONAL DIFFERENCES IN GROWTH RATES Market Globalization and Economic Areas Geoffrey Brennan (editor) COERCIVE POWER AND ITS ALLOCATION IN THE EMERGENT EUROPE Laura Castellucci, Anil Markandya ENVIRONMENTAL TAXES AND FISCAL REFORM Bruno Chiarini, Gustavo Piga, Paolo Malanima FROM MALTHUS STAGNATION TO SUSTAINED GROWTH Guido Cozzi and Roberto Cellini (editors) INTELLECTUAL PROPERTY, COMPETITION, AND GROWTH Debora Di Gioacchino, Sergio Ginebri and Laura Sabani (editors) THE ROLE OF ORGANIZED INTEREST GROUPS IN POLICY MAKING
2 Luca Lambertini (editor) FIRMS OBJECTIVES AND INTERNAL ORGANISATION IN A GLOBAL ECONOMY Positive and Normative Analysis Riccardo Leoni and Giuseppe Usai (editors) ORGANIZATIONS TODAY Marco Malgarini and Gustavo Piga (editors) CAPITAL ACCUMULATION, PRODUCTIVITY AND GROWTH Monitoring Italy 2005 Gustavo Piga and Khi V. Thai THE ECONOMICS OF PUBLIC PROCUREMENT Central Issues in Contemporary Economic Theory and Policy Series Standing Order ISBN (outside North America only) You can receive future titles in this series as they are published by placing a standing order. Please contact your bookseller or, in case of difficulty, write to us at the address below with your name and address, the title of the series and the ISBN quoted above. Customer Services Department, Macmillan Distribution Ltd, Houndmills, Basingstoke, Hampshire RG21 6XS, England
3 Environmental Taxes and Fiscal Reform Edited by Laura Castellucci University of Rome Tor Vergata, Rome, Italy and Anil Markandya Basque Centre for Climate Change, Bilbao, Spain
4 Servizio Italiano Pubblicazioni Internazionali 2012 Softcover reprint of the hardcover 1st edition All rights reserved. No reproduction, copy or transmission of this publication may be made without written permission. No portion of this publication may be reproduced, copied or transmitted save with written permission or in accordance with the provisions of the Copyright, Designs and Patents Act 1988, or under the terms of any licence permitting limited copying issued by the Copyright Licensing Agency, Saffron House, 6 10 Kirby Street, London EC1N 8TS. Any person who does any unauthorized act in relation to this publication may be liable to criminal prosecution and civil claims for damages. The authors have asserted their rights to be identified as the authors of this work in accordance with the Copyright, Designs and Patents Act First published 2012 by PALGRAVE MACMILLAN Palgrave Macmillan in the UK is an imprint of Macmillan Publishers Limited, registered in England, company number , of Houndmills, Basingstoke, Hampshire RG21 6XS. Palgrave Macmillan in the US is a division of St Martin s Press LLC, 175 Fifth Avenue, New York, NY Palgrave Macmillan is the global academic imprint of the above companies and has companies and representatives throughout the world. Palgrave and Macmillan are registered trademarks in the United States, the United Kingdom, Europe and other countries. ISBN DOI / ISBN (ebook) This book is printed on paper suitable for recycling and made from fully managed and sustained forest sources. Logging, pulping and manufacturing processes are expected to conform to the environmental regulations of the country of origin. A catalogue record for this book is available from the British Library. Library of Congress Cataloging-in-Publication Data Environmental taxes and fiscal reform / edited by Laura Castellucci, Anil Markandya. p. cm. 1. Environmental impact charges. 2. Fiscal policy Environmental aspects. 3. Taxation Environmental aspects. I. Castellucci, Laura. II. Markandya, Anil, 1945 HJ5316.E dc
5 Contents* Environmental Taxes and Fiscal Reform 1 Laura Castellucci and Anil Markandya Part I General Issues Environmental Taxation: What Have We Learnt in the Last 30 Years? 9 Anil Markandya Market-Based Instruments in CEE Countries: Much Ado about Nothing 57 Milan Ščasný and Vojtĕch Máca Part II Distributional Issues Environmental Fiscal Reform in East and Southern Africa and its Effects on Income Distribution 93 Daniel Slunge and Thomas Sterner Environmental Quality and Income Inequality: The Impact of Redistribution on Direct Household Emissions in Italy 123 Laura Castellucci, Alessio D Amato and Mariangela Zoli Part III Carbon Taxation Carbon Pricing as an Effective Instrument of Climate Policy: Searching for an Optimal Policy Instrument 145 Alberto Ansuategi and Ibon Galarraga Green Taxes on Aviation: The Case of Italy. The Proposal of the Green Taxation Matrix 168 Anil Markandya and Elena Claire Ricci Is it Time for a Revival of ETR in Italy? Energy Elasticities and Factor Substitutability for Manufacturing Firms 207 Rossella Bardazzi, Filippo Oropallo and Maria Grazia * These chapters were originally published as articles in the journal Rivista di Politica Economica and have been reproduced exactly and in their entirety, including any minor typographic errors or omissions which may have been present in the original. v
6 vi Contents Financing Public Expenditure via Emissions Taxation under International Emissions Trading: Is There Any Scope for Emission Tax Harmonization? 243 Alessio D Amato and Amanda Spisto Index 269
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