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|Title:||Habit Formation in the Environmental Quality: Dynamic Optimal Environmental Taxation|
|University:||Göteborg University. School of Business, Economics and Law|
|Series/Report no.:||Working Papers in Economics, nr 92|
|Keywords:||Habit formation; environment; intertemporal choice; transitional dynamics|
|Abstract:||In this article we propose a model in which individuals experience habit formation in environmental quality. Further, a consumption good causes a negative external effect on the environment. The intertemporal utility of a benevolent social planner depends on consumption of two goods and the environment. Hence, the choice of the social planner is to maximize utility given the negative effect of the consumption good on the environment, taking into account that there is habit formation in en... more|
|Appears in Collections:||Working papers|
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