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Journal of Regulatory Economics

, Volume 41, Issue 3, pp 337–357 | Cite as

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

  • Anne-Célia Disdier
  • Stéphan MaretteEmail author
Review Article

Abstract

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.

Keywords

Regulatory instruments Environment Stated preference experiment Willingness-to-pay 

JEL Classification

C91 H23 Q51 

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Copyright information

© Springer Science+Business Media, LLC 2011

Authors and Affiliations

  1. 1.Paris School of Economics-INRAParisFrance
  2. 2.INRA, UMR Economie Publique AgroParisTechThiverval-GrignonFrance

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