Taxes, minimum-quality standards and/or product labeling to improve environmental quality and welfare: Experiments can provide answers

Springer Science and Business Media LLC - Tập 41 - Trang 337-357 - 2011
Anne-Célia Disdier1, Stéphan Marette2
1Paris School of Economics-INRA, Paris, France
2INRA, UMR Economie Publique AgroParisTech, Thiverval-Grignon, France

Tóm tắt

This study focuses on the welfare impact of taxes, minimum-quality standards, and/or product labeling. A theoretical framework shows that the combination of a label and a per-unit tax is socially optimal. Alternatively, if the label is unavailable, the theory cannot directly conclude which instrument should be socially preferred. Estimations of willingness-to-pay (WTP) are useful for completing the theoretical analysis and evaluating policies ex ante on case-by-case basis. Using hypothetical WTP for shrimp, we confirm that the combination of a label and a tax is socially optimal. In the absence of a label, simulations show that a minimum-quality standard leads to a higher welfare compared to a tax.

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