Assessment of the political acceptability of an ecological tax reform in the transport sector - the Willingness to Accept (WTA)
Environmental economists recommend the use of taxes and fiscal changes as market economy instruments for environmental policy. The purpose of such measures is to reduce or to avoid market failure due to negative external effects. Normally, taxes are fiscal income sources whereas environmental taxes serve as an incentive to change consumer behavior. In this paper, the effects of an ecological tax reform in the traffic sector on a selected German household will be illustrated on the basis of a theoretical welfare approach. The basic idea used for an ecological tax reform is first to reduce those household activities which produce greenhouse gas emissions, then to use the earned tax revenue to compensate the household, so that the household budget is unchanged to a large degree. In this work, direct monetary compensation models are compared to the idea of the indirect utility compensation. Direct monetary compensation gives every household a flat amount of money (lump-sum transfer) so the individual has the choice to decide which sort of transportation he prefers.
- OSTI ID:
- 577272
- Report Number(s):
- CONF-970522-; TRN: 98:000898-0059
- Resource Relation:
- Conference: 8. global warming international conference and expo, New York, NY (United States), 25-28 May 1997; Other Information: PBD: 1997; Related Information: Is Part Of 8th Global warming international conference and exposition; PB: 156 p.
- Country of Publication:
- United States
- Language:
- English
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