Green Taxation in Question: Politics and Economic Efficiency in Environmental Regulation

Environmental economists pay little or no attention to the political context within which green taxation would be introduced. In order to understand the real-life politics of green taxation, Carsten Daugbjerg and Gert Tinggaard Svendsen identify three main political constraints: the micro-level approach of rent seeking; the macro-level approach of party politics; and the meso-level approach of policy networks. Based on these findings the authors develop policy recommendations concerning the future design of green taxation and international permit trading.