78362 - TAXATION POLICIES AND ENVIRONMENTAL ISSUES

Conoscenze e abilità da conseguire

The course starts with an exposition of the different market failures (externalities, public goods, market power, asymmetric information), with emphasis on tourism and environmental issues. The course then focuses on taxation policies as remedy to market inefficiencies. After a general introduction on taxation principles, the student will learn the most advances in environmental taxation in promoting green growth as well as the most recent applications of taxation on tourism sector (road tax, tourist tax, congestion pricing).

Contenuti

1 Introduction

Reasons for government interventions. Market failures. Normative vs positive economics. Paternalism vs individual failures.

2 Fundamentals of Game Theory 

Strategic interactions. Social dilemmas. Social Norms. Behavioral game theory. Advices for policymakers.

3 Public Goods

Environmental Public Games. Prisoner Dilemma with punishment. Threshold game with Public good. Chicken games.  Altruism and Social Capital. Warm Glow. Theory and Class experiments.

4 Externalities

Different types of externalities. Health externalities. Applications to the tourism sector.

4.1 Internalising local and global externalities: different policy interventions.  Cooperation in the local commons. Carbon taxes. International Environmental Agreements. Subsidising environmentally friendly products. Theory and Applications in the Field.

5 Further Insights on Environmental Policies: Climate change mitigation. Marginal abatement curves. Environmental Kuznets Curve.

6 Principal indices of public finance

Taxes and spending: descriptive statistics across Europe and US. Government budgeting.

7 Public Debt

Intertemporal budget constraints of governments. Conditions for debt sustainability.  Recent Dynamics of Public Debt: an international comparison. 

8 Taxation in Theory and Practice

Taxation in Europe and around the world

Tax inefficiencies and their implications for optimal taxation. Tax incidence.

The equity implications of taxation: income distribution, transfers, welfare programs

Taxes on labour supply, consumption, savings.

Tourism market and Taxation

Testi/Bibliografia

 Jonathan Gruber, Public Finance and Public Policy, Last Edition, Worth Publishers, Chapter:1,2,6,7,4,18, 19, 20, 21.

Chapters 4, 16, 20 from CORE Economics textbook: freely available at: https://www.core-econ.org/the-economy/book/text/0-3-contents.html . Assigned readings and lecture material.

Metodi didattici

The course will be a combination of frontal lectures and student presentations.

Modalità di verifica e valutazione dell'apprendimento

The exam is a written test of 60 minutes with multiple choices and open essay-style questions. It is based on three out of four questions (8 points each question) and 4 multiple choices (2 points each question).

Notes or other materials are not allowed.

Grading is as follows:

• <18 fail
• 18-23 pass
• 24-27 good
• 28-30 very good
• 30L excellent

Students can reject the grade obtained at the exam only twice. To this end, he/she must email a request to the instructor within the date set for registration. The instructor will confirm reception of the request within the same date.

Orario di ricevimento

Consulta il sito web di Emanuela Randon