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Can Pigouvian Taxation Internalize the Social Cost of Platinum-Group Element Emissions?


Affiliations
1 Department of Accounting and Taxes, Mendel University in Brno, Zemedelska 1, CZ-613 00 Brno, Czech Republic
2 Central European Institute of Technology, Brno University of Technology, Technicka 3058/10, CZ-616 00 Brno, Czech Republic
 

Here we discuss the suitability of a Pigouvian tax on platinum-group element (PGE) emissions. Based on Pigou’s theory, we develop a proposal for a viable and efficient tax to curb the negative effects of PGE emissions. The proposed emissions-impacting tax derives from an analysis of the fundamental rationale underlying Pigou’s theory of internalizing the social cost of environmental externalities. The results indicate that sustainability of PGE taxation depends on the capacity of the tax to internalize the external costs of pollution and to enhance transition to environment-friendly technologies.

Keywords

Environmental Externalities, External Costs, Platinum-group Elements, Social Cost, Taxation.
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  • Can Pigouvian Taxation Internalize the Social Cost of Platinum-Group Element Emissions?

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Authors

Danuse Nerudova
Department of Accounting and Taxes, Mendel University in Brno, Zemedelska 1, CZ-613 00 Brno, Czech Republic
Marian Dobranschi
Department of Accounting and Taxes, Mendel University in Brno, Zemedelska 1, CZ-613 00 Brno, Czech Republic
Vojtech Adam
Central European Institute of Technology, Brno University of Technology, Technicka 3058/10, CZ-616 00 Brno, Czech Republic

Abstract


Here we discuss the suitability of a Pigouvian tax on platinum-group element (PGE) emissions. Based on Pigou’s theory, we develop a proposal for a viable and efficient tax to curb the negative effects of PGE emissions. The proposed emissions-impacting tax derives from an analysis of the fundamental rationale underlying Pigou’s theory of internalizing the social cost of environmental externalities. The results indicate that sustainability of PGE taxation depends on the capacity of the tax to internalize the external costs of pollution and to enhance transition to environment-friendly technologies.

Keywords


Environmental Externalities, External Costs, Platinum-group Elements, Social Cost, Taxation.

References





DOI: https://doi.org/10.18520/cs%2Fv117%2Fi10%2F1701-1709