taxing negative externalities makes a lot of sense, especially if you're looking to change practices, but they're still paid
1
and it's interesting in the case of carbon taxes in particular to see who pays (oil companies, retailers, consumers etc)
1
Distributional aspects can be corrected by other policies that change distribution. But don't know what you mean by "still paid".
1
using a carbon tax as an example, you could see the same arguments being made "oil companies will pay for their pollution: cont.
5
on the flip side if demand were perfectly inelastic and there were no suitable substitutes, consumers would bear the entire cost
1
Things about "who bears the cost" of a very specific policy aren't interesting since basically *all* policy effects distribution
1
Rather than using that to argue that police should be paid for only by the rich, we should consider the overall distribution...
2
That is, fix things up at the end with an appropriately graduated (& maybe negative at points) wealth, income, or consumption tax.
Jan 26, 2017 · 11:06 PM UTC

