Green Taxes/SubsidiesVT Law SchoolClass 7

Gary Flomenhoft, Research AssociateGund InstituteBurlington, VT

Rival}

Non-rival}

Excludable Non-Excludable

Market Good: Food, clothes, cars, land, timber, fish once captured, farmed fish, regulated pollution

Potential market good(Tragedy of the “non-commons”)but inefficient: patented information,Pond, roads (congestible),streetlights

Pure Public Good:climate stability, ozone layer, clean air/water/land, Biodiversity, information, habitat, life support functions, etc.

Open Access Regime: (misnamed: Tragedy of the commons)Oceanic fisheries, timberetc. from unprotected forests, air pollution, waste absorption capacity

Non-rival,congestible

Private beaches, private gardens, toll roads, zoos, movies

Public beaches, gardens, roads, etc.

Non-market allocation mechanisms

Government

International agencies

NGOs

Individuals

Families

Others?

EU Green taxes

EU Types of Green taxes

GREEN TAX SHIFT

Oil Subsidies

US Oil subsidies vs. global PV sales

5.2

1.1

11.8

0

2

4

6

8

10

12

14

16

18

US oil subsidies Global PV sales

Billio

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f U

S $