Current Science

Open Access Open Access  Restricted Access Subscription Access

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.
User
Notifications
Font Size

  • König, H. P., Hertel, R. F., Koch, W. and Rosner, G., Determination of platinum emissions from a three-way catalyst-equipped gasoline-engine. Atmos. Environ. A, 1992, 26, 741–745.

  • Ravindra, K., Bencs, L. and Van Grieken, R., Platinum group elements in the environment and their health risk. Sci. Total Environ., 2004, 318, 1–43.

  • Bocca, B., Petrucci, F., Alimonti, A. and Caroli, S., Traffic-related platinum and rhodium concentrations in the atmosphere of Rome. J. Environ. Monit., 2003, 5, 563–568.

  • Schafer, J. and Puchelt, H., Platinum-group-metals (PGM) emitted from automobile catalytic converters and their distribution in roadside soils. J. Geochem. Explor., 1998, 64, 307–314.

  • Gomez, B. et al., Levels and risk assessment for humans and ecosystems of platinum-group elements in the airborne particles and road dust of some European cities. Sci. Total Environ., 2002, 299, 1–19.

  • Moldovan, M., Gomez, M. M. and Palacios, M. A., On-line preconcentration of palladium on alumina microcolumns and determination in urban waters by inductively coupled plasma mass spectrometry. Anal. Chim. Acta, 2003, 478, 209–217.

  • Morton, O., Puchelt, H., Hernandez, E. and Lounejeva, E., Trafficrelated platinum group elements (PGE) in soils from Mexico City. J. Geochem. Explor., 2001, 72, 223–227.

  • Barbante, C. et al., Greenland snow evidence of large scale atmospheric contamination for platinum, palladium, and rhodium. Environ. Sci. Technol., 2001, 35, 835–839.

  • Moldovan, M., Origin and fate of platinum group elements in the environment. Anal. Bioanal. Chem., 2007, 388, 537–540.

  • Dubiella-Jackowska, A., Polkowska, Z. and Namiesnik, J., Platinum group elements: a challenge for environmental analytics. Pol. J. Environ. Stud., 2007, 16, 329–345.

  • Lenz, K. et al., Presence of cancerostatic platinum compounds in hospital wastewater and possible elimination by adsorption to activated sludge. Sci. Total Environ., 2005, 345, 141–152.

  • Kummerer, K., Helmers, E., Hubner, P., Mascart, G., Milandri, M., Reinthaler, F. and Zwakenberg, M., European hospitals as a source for platinum in the environment in comparison with other sources. Sci. Total Environ., 1999, 225, 155–165.

  • Artelt, S., Kock, H., Konig, H. P., Levsen, K. and Rosner, G., Engine dynamometer experiments: platinum emissions from differently aged three-way catalytic converters. Atmos. Environ., 1999, 33, 3559–3567.

  • Moldovan, M., Gomez, M. M. and Palacios, M. A., Determination of platinum, rhodium and palladium in car exhaust fumes. J. Anal. At. Spectrom., 1999, 14, 1163–1169.

  • Konieczny, P. et al., Effects triggered by platinum nanoparticles on primary keratinocytes. Int. J. Nanomed., 2013, 8, 3963–3975.

  • Rojas, F. S., Ojeda, C. B. and Pavon, J. M. C., Automated on-line separation preconcentration system for palladium determination by graphite furnace atomic absorption spectrometry and its application to palladium determination in environmental and food samples. Talanta, 2006, 70, 979–983.

  • Hees, T. et al., Distribution of platinum group elements (PT, PD, RH) in environmental and clinical matrices: composition, analytical techniques and scientific outlook – status report. Environ. Sci. Pollut. Res., 1998, 5, 105–111.

  • Stejskal, K., Diopan, V., Adam, V., Beklova, M., Havel, L. and Kizek, R., Affecting of various plant models by cisplatin. Lis. Cukrov. Repar., 2007, 123, 328–329.

  • Babula, P., Adam, V., Opatrilova, R., Zehnalek, J., Havel, L. and Kizek, R., Uncommon heavy metals, metalloids and their plant toxicity: a review. Environ. Chem. Lett., 2008, 6, 189–213.

  • Supalkova, V. et al., Electroanalysis of plant thiols. Sensors, 2007, 7, 932–959.

  • Schafer, J., Hannker, D., Eckhardt, J. D. and Stuben, D., Uptake of traffic-related heavy metals and platinum group elements (PGE) by plants. Sci. Total Environ., 1998, 215, 59–67.

  • Rabik, C. A. and Dolan, M. E., Molecular mechanisms of resistance and toxicity associated with platinating agents. Cancer Treat. Rev., 2007, 33, 9–23.

  • Wiseman, C. L. S. and Zereini, F., Airborne particulate matter, platinum group elements and human health: a review of recent evidence. Sci. Total Environ., 2009, 407, 2493–2500.

  • Ely, J. C., Neal, C. R., Kulpa, C. F., Schneegurt, M. A., Seidler, J. A. and Jain, J. C., Implications of platinum-group element accumulation along US roads from catalytic-converter attrition. Environ. Sci. Technol., 2001, 35, 3816–3822.

  • Centemeri, L., Environmental damage as negative externality: uncertainty, moral complexity and the limits of the market. ECadernos, Centre for Social Studies, University of Coimbra, 2009.

  • Kapp, K. W., On the nature and significance of social costs. Kyklos, 1969, 22, 334–347.

  • Papandreou, A., Externality, convexity and institutions. Econ. Philos., 2003, 19, 281–309.

  • Galbraith, J. K., The Affluent Society, New American Library, New York, USA, 1958, pp. 200–250.

  • Cheung, S., The Myth of Social Cost, The Institute of Economic Affairs, London, UK, 1978.

  • Hardin, G., The tragedy of the commons. Am. Assoc. Adv. Sci., 1968, 162, 1243–1248.

  • Pigou, C. A., The Economics of Welfare, Macmillan and Co, Ltd, London, UK, 1928.

  • Sandmo, A., Optimal taxation in the presence of externalities. Swed. J. Econ., 1975, 14, 86–98.

  • Meade, J. E., External economies and diseconomies in a competitive situation. Econ. J., 1952, 62, 54–67.

  • Bovenberg, A. L. and Goulder, L. H., Optimal environmental taxation in the presence of other taxes: general-equilibrium analyses. Am. Econ. Rev., 1996, 86, 985–1000.

  • Cremer, H., Gahvari, F. and Ladoux, N., Externalities and optimal taxation. J. Public Econ., 1998, 70, 343–364.

  • Oates, W. E., Green taxes: Can we protect the environment and improve the tax system at the same time? South. Econ. J., 1995, 5, 915–922.

  • Jaeger, W., The Welfare Effects of Environmental Taxation, Environmental and Resource Economics, Springer Science, 2011.

  • Christiansen, V. and Smith, S., Emissions taxes and abatement regulation under uncertainty. Environ. Resour. Econ., 2015, 60, 17–35.

  • Baumol, W. J., On taxation and the control of externalities. Am. Econ. Rev., 1972, 62, 307–322.

  • Eskeland, G. S., A presumptive Pigouvian tax: complementing regulation to mimic an emissions fee. World Bank Econ. Rev., 1994, 8, 373–394.

  • Fullerton, D. and Wolverton, A., The case for a two-part instrument: presumptive tax and environmental subsidy. Natl. Bureau Econ. Res., 1997, 5993, 1–6.

  • Bruha, J. and Scasny, M., Social and distributional aspects of environmental tax reform proposals in the Czech Republic. EAERE, 2004, 1, 1–26.

  • Cuervo, J. and Ved, P. G., Carbon taxes: their macroeconomic effects and prospects for global adoption. A survey of the literature. Rev. Desarrollo Soc., 1999, 43, 132–171.

  • Coase, R. H., The problem of social cost. J. Law Econ., 2013, 56, 837–877.

  • Libecap, G. D., The tragedy of the commons: property rights and markets as solutions to resource and environmental problems. Aust. J. Agric. Res. Econ., 2009, 53, 129–144.

  • Lewin, P., Pollution externalities: social cost and strict liability. Cato J., 1982, 2, 205–229.

  • Färe, R., Grosskopf, S., Lovell, C. K. and Pasurka, C., Multilateral productivity comparisons when some outputs are undesirable: a nonparametric approach. Rev. Econ. Stat., 1989, 1, 90–98.

  • Shephard, R. W., Theory of Cost and Production Functions, Princeton University Press, Princeton, New Jersey, USA, 1970.

  • Matsushita, K. and Asano, K., Reducing CO2 emissions of Japanese thermal power companies: a directional output distance function approach. Environ. Econ. Policy Stud., 2014, 16(1), 1–9.

  • Hudgins, L. B. and Primont, D., Derivative properties of directional technology distance functions. In Aggregation, Efficiency, and Measurement, Springer, Boston, MA, USA, 2007, pp. 31–43.

  • Färe, R., Grosskopf, S., Lovell, C. K. and Yaisawarng, S., Derivation of shadow prices for undesirable outputs: a distance function approach. Rev. Econ. Stat., 1993, 1, 374–380.

  • Ekins, P., Summerton, P., Thoung, C. and Lee, D., A major environmental tax reform for the UK: results for the economy, employment and the environment. Environ. Resour. Econ., 2011, 50, 447–474.

  • Jones, B., Keen, M. and Strand, J., Fiscal Implications of Climate Change, The World Bank, Washington, USA, 2012, pp. 100–150.

  • Gahvari, F., Second-best Pigouvian taxation: a clarification. Environ. Resour. Econ., 2014, 59, 525–535.

  • McAusland, C. and Najjar, N., Carbon footprint taxes. Environ. Resour. Econ., 2015, 61, 37–70.

  • Tideman, N. and Plassmann, F., Efficient bilateral taxation of externalities. Public Choice, 2017, 173, 109–130.

  • Hoffmann, F., Inderst, R. and Moslener, U., Taxing externalities under financing constraints. Econ. J., 2017, 127, 2478–2503.

  • De Borger, B. and Glazer, A., Support and opposition to a Pigouvian tax: road pricing with reference-dependent preferences. J. Urban Econ., 2017, 99, 31–47.

  • Matsumura, T. and Yamagishi, A., Long-run welfare effect of energy conservation regulation. Econ. Lett., 2017, 154, 64–68.

  • Lanz, B., Wurlod, J. D., Panzone, L. and Swanson, T., The behavioural effect of Pigouvian regulation: evidence from a field experiment. J. Environ. Econ. Manage., 2018, 87, 190–205.

  • Leinert, S., Daly, H., Hyde, B. and Gallachóir, B. Ó., Co-benefits? Not always: quantifying the negative effect of a CO2-reducing car taxation policy on NOx emissions. Energ. Policy, 2013, 63, 1151– 1159.

  • Kubatko, O. and Kubatko, O., Economic estimations of air pollution health nexus. Environ. Dev. Sustain., 2019, 21, 1507–1517.

  • Buchanan, J. M. and Stubblebine, C. W., Externality. Economica, 1962, 29, 371–384.

  • Nerudova, D. And Dobranschi, M., Double dividend hypothesis: can it be validated by carbon taxation swap with payroll taxes. Inz. Ekon., 2015, 26, 23–32.

  • Ramsey, F. P., A contribution to the theory of taxation. Econ. J., 1927, 37, 25–29.

  • Kenkel, D. S., Are alcohol tax hikes fully passed through to prices? Evidence from Alaska. Am. Econ. Rev., 2005, 95, 273– 277.


Abstract Views: 350

PDF Views: 98




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

Abstract Views: 350  |  PDF Views: 98

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