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Environmental Taxation and Productivity of Industries : Heterogeneity of Production Technologies, Entry and Exit

Research Project

Project/Area Number 22730194
Research Category

Grant-in-Aid for Young Scientists (B)

Allocation TypeSingle-year Grants
Research Field Applied economics
Research InstitutionNagoya University

Principal Investigator

NAKADA Minoru  名古屋大学, 環境学研究科, 准教授 (50372545)

Project Period (FY) 2010 – 2011
Project Status Completed (Fiscal Year 2011)
Budget Amount *help
¥1,690,000 (Direct Cost: ¥1,300,000、Indirect Cost: ¥390,000)
Fiscal Year 2011: ¥650,000 (Direct Cost: ¥500,000、Indirect Cost: ¥150,000)
Fiscal Year 2010: ¥1,040,000 (Direct Cost: ¥800,000、Indirect Cost: ¥240,000)
Keywords環境経済学 / 内生的成長理論 / 環境政策 / 生産性 / 参入退出 / 異質性
Research Abstract

The main objective of this analysis is to analyze to the extent which environmental taxation affects productivity in detail. For that purpose, I introduce the heterogeneity in firms' production technologies and construct a general equilibrium model dealing with firms' entry and exit. Based on Melitz(2003), the model employs a distribution function of firms' productivity and constructs an endogenous growth model for analyzing the heterogeneity of firms. While fixed costs are given, the equilibrium cut-off point is derived where a firm's profit is zero and firms with minus profits should exit from the market. The introduction of environmental taxation increases the production costs of firms and only firms with higher productivity which cover such higher costs can continue their production. On the contrary, those with lower productivity have to exit from the market. If the introduction of the environmental taxation has an impact on the cut-off point to encourage the entry of firms with higher productivity and the exit of those with lower productivity, the environmental tax may have a positive impact on total factor productivity of industries. In this analysis, the heterogeneity in firms' production technologies is introduced for constructing a general equilibrium model dealing with firms' entry and exit.

Report

(3 results)
  • 2011 Annual Research Report   Final Research Report ( PDF )
  • 2010 Annual Research Report
  • Research Products

    (3 results)

All 2012 2010

All Journal Article (1 results) (of which Peer Reviewed: 1 results) Presentation (2 results)

  • [Journal Article] Environmental Tax Reform and Growth : Income Tax Cuts or Profits Tax Reduction2010

    • Author(s)
      Minoru Nakada
    • Journal Title

      Environmental and Resource Economics

      Volume: v. 47 Pages: 549-565

    • Related Report
      2011 Final Research Report 2010 Annual Research Report
    • Peer Reviewed
  • [Presentation] Distance to frontier : A political economy of an urban environmental policy2012

    • Author(s)
      Minoru Nakada
    • Organizer
      Annual Conference of Environmental and Resource Economists
    • Place of Presentation
      於プラハ
    • Related Report
      2011 Final Research Report
  • [Presentation] Distance to frontier : A political economy of an urban environmental policy2012

    • Author(s)
      Minoru Nakada
    • Organizer
      Annual Conference of Environmental and Resource Economists
    • Place of Presentation
      Charles University of Prague,チェコプラハ(発表確定)
    • Related Report
      2011 Annual Research Report

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Published: 2010-08-23   Modified: 2016-04-21  

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