Environmental economics
ENV-471
Public choice - Exercise
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Description
Regarding exercise 2, I argued that the 60 ct/l tax on diesel could be either a regular tax designed to collect money for the public budget – in which case we would count only 90 ct/l as ‘resource cost’ – or an enironmental tax designed to internalise external and infrastructure costs - in which case we would count 1.50 /l, which is what I finally did in class.