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Taxation of Land and Economic Growth
economies Article Taxation of Land and Economic Growth Shulu Che 1, Ronald Ravinesh Kumar 2 and Peter J. Stauvermann 1,* 1 Department of Global Business and Economics, Changwon National University, Changwon 51140, Korea; [email protected] 2 School of Accounting, Finance and Economics, Laucala Campus, The University of the South Pacific, Suva 40302, Fiji; [email protected] * Correspondence: [email protected]; Tel.: +82-55-213-3309 Abstract: In this paper, we theoretically analyze the effects of three types of land taxes on economic growth using an overlapping generation model in which land can be used for production or con- sumption (housing) purposes. Based on the analyses in which land is used as a factor of production, we can confirm that the taxation of land will lead to an increase in the growth rate of the economy. Particularly, we show that the introduction of a tax on land rents, a tax on the value of land or a stamp duty will cause the net price of land to decline. Further, we show that the nationalization of land and the redistribution of the land rents to the young generation will maximize the growth rate of the economy. Keywords: taxation of land; land rents; overlapping generation model; land property; endoge- nous growth Citation: Che, Shulu, Ronald 1. Introduction Ravinesh Kumar, and Peter J. In this paper, we use a growth model to theoretically investigate the influence of Stauvermann. 2021. Taxation of Land different types of land tax on economic growth. Further, we investigate how the allocation and Economic Growth. Economies 9: of the tax revenue influences the growth of the economy. -
The Fiscal Benefits of Stringent Climate Change Mitigation: an Overview
Climate Policy ISSN: 1469-3062 (Print) 1752-7457 (Online) Journal homepage: http://www.tandfonline.com/loi/tcpo20 The fiscal benefits of stringent climate change mitigation: an overview Jan Siegmeier, Linus Mattauch, Max Franks, David Klenert, Anselm Schultes & Ottmar Edenhofer To cite this article: Jan Siegmeier, Linus Mattauch, Max Franks, David Klenert, Anselm Schultes & Ottmar Edenhofer (2017): The fiscal benefits of stringent climate change mitigation: an overview, Climate Policy, DOI: 10.1080/14693062.2017.1400943 To link to this article: https://doi.org/10.1080/14693062.2017.1400943 Published online: 04 Dec 2017. Submit your article to this journal Article views: 22 View related articles View Crossmark data Full Terms & Conditions of access and use can be found at http://www.tandfonline.com/action/journalInformation?journalCode=tcpo20 Download by: [192.76.8.71] Date: 06 December 2017, At: 02:21 CLIMATE POLICY, 2017 https://doi.org/10.1080/14693062.2017.1400943 SYNTHESIS ARTICLE The fiscal benefits of stringent climate change mitigation: an overview Jan Siegmeier a,b, Linus Mattaucha,c, Max Franksb,d, David Klenerta,b,d, Anselm Schultes b,d and Ottmar Edenhofera,b,d aMercator Research Institute on Global Commons and Climate Change, Berlin, Germany; bTechnical University of Berlin, Chair for Economics of Climate Change, Berlin, Germany; cEnvironmental Change Institute and Institute for New Economic Thinking at the Oxford Martin School, School of Geography and the Environment, University of Oxford, Oxford, UK; dPotsdam Institute for Climate Impact Research, Potsdam, Germany ABSTRACT KEYWORDS The Paris Agreement’s very ambitious mitigation goals, notably to ‘pursue efforts’ to Carbon pricing; distributional limit warming to 1.5°C, imply that climate policy will remain a national affair for effects; policy interactions/ some time. -
A Macroeconomic Henry George Theorem
A Service of Leibniz-Informationszentrum econstor Wirtschaft Leibniz Information Centre Make Your Publications Visible. zbw for Economics Mattauch, Linus; Siegmeier, Jan; Edenhofer, Ottmar; Creutzig, Felix Working Paper Financing Public Capital through Land Rent Taxation: A Macroeconomic Henry George Theorem CESifo Working Paper, No. 4280 Provided in Cooperation with: Ifo Institute – Leibniz Institute for Economic Research at the University of Munich Suggested Citation: Mattauch, Linus; Siegmeier, Jan; Edenhofer, Ottmar; Creutzig, Felix (2013) : Financing Public Capital through Land Rent Taxation: A Macroeconomic Henry George Theorem, CESifo Working Paper, No. 4280, Center for Economic Studies and ifo Institute (CESifo), Munich This Version is available at: http://hdl.handle.net/10419/77659 Standard-Nutzungsbedingungen: Terms of use: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Documents in EconStor may be saved and copied for your Zwecken und zum Privatgebrauch gespeichert und kopiert werden. personal and scholarly purposes. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle You are not to copy documents for public or commercial Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich purposes, to exhibit the documents publicly, to make them machen, vertreiben oder anderweitig nutzen. publicly available on the internet, or to distribute or otherwise use the documents in public. Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, If the documents have been made available under an Open gelten abweichend von diesen Nutzungsbedingungen die in der dort Content Licence (especially Creative Commons Licences), you genannten Lizenz gewährten Nutzungsrechte. may exercise further usage rights as specified in the indicated licence. www.econstor.eu Financing Public Capital through Land Rent Taxation: A Macroeconomic Henry George Theorem Linus Mattauch Jan Siegmeier Ottmar Edenhofer Felix Creutzig CESIFO WORKING PAPER NO. -
Hypergeorgism: When Rent Taxation Is Socially Optimal∗
Hypergeorgism: When rent taxation is socially optimal∗ Ottmar Edenhoferyz, Linus Mattauch,x Jan Siegmeier{ June 25, 2014 Abstract Imperfect altruism between generations may lead to insufficient capital accumulation. We study the welfare consequences of taxing the rent on a fixed production factor, such as land, in combination with age-dependent redistributions as a remedy. Taxing rent enhances welfare by increasing capital investment. This holds for any tax rate and recycling of the tax revenues except for combinations of high taxes and strongly redistributive recycling. We prove that specific forms of recycling the land rent tax - a transfer directed at fundless newborns or a capital subsidy - allow reproducing the social optimum under pa- rameter restrictions valid for most economies. JEL classification: E22, E62, H21, H22, H23, Q24 Keywords: land rent tax, overlapping generations, revenue recycling, social optimum ∗This is a pre-print version. The final article was published at FinanzArchiv / Public Finance Analysis, doi: 10.1628/001522115X14425626525128 yAuthors listed in alphabetical order as all contributed equally to the paper. zMercator Research Institute on Global Commons and Climate Change, Techni- cal University of Berlin and Potsdam Institute for Climate Impact Research. E-Mail: [email protected] xMercator Research Institute on Global Commons and Climate Change. E-Mail: [email protected] {(Corresponding author) Technical University of Berlin and Mercator Research Insti- tute on Global Commons and Climate Change. Torgauer Str. 12-15, D-10829 Berlin, E-Mail: [email protected], Phone: +49-(0)30-3385537-220 1 1 INTRODUCTION 2 1 Introduction Rent taxation may become a more important source of revenue in the future due to potentially low growth rates and increased inequality in wealth in many developed economies (Piketty and Zucman, 2014; Demailly et al., 2013), concerns about international tax competition (Wilson, 1986; Zodrow and Mieszkowski, 1986; Zodrow, 2010), and growing demand for natural resources (IEA, 2013). -
Why Wind Is Not Coal: on the Economics of Electricity Generation
Why Wind is not Coal On the Economics of Electricity Generation Lion Hirth, Falko Ueckerdt & Ottmar Edenhofer [email protected] This is a post-print version of an article forthcoming in The Energy Journal. Brought to you by neon. Please cite as: Hirth, Lion, Falko Ueckerdt & Ottmar Edenhofer (2016): " Why Wind is not Coal: On the Economics of Electricity", The Energy Journal (forthcoming). Seeking advice on power markets? neon neue energieökonomik is a Berlin-based boutique consulting firm for energy economics. neon conducts model-based studies of power markets, provides electricity price forecasts, and organizes seminars. www.neon-energie.de Why wind is not coal: on the economics of electricity generation Lion Hirth*1a,b,d, Falko Ueckerdt b, Ottmar Edenhofer b,c,d – March 2015 – Forthcoming in The Energy Journal a neon neue energieökonomik gmbh (neon), Germany b Potsdam Institute for Climate Impact Research (PIK), Germany c Chair Economics of Climate Change, Technische Universität Berlin (TU Berlin), Germany d Mercator Research Institute on Global Commons and Climate Change (MCC), Germany Abstract – Electricity is a paradoxical economic good: it is highly homogeneous and heterogene- ous at the same time. Electricity prices vary dramatically between moments in time, between location, and according to lead-time between contract and delivery. This three-dimensional het- erogeneity has implication for the economic assessment of power generation technologies: differ- ent technologies, such as coal-fired plants and wind turbines, produce electricity that has, on av- erage, a different economic value. Several tools that are used to evaluate generators in practice ignore these value differences, including “levelized electricity costs”, “grid parity”, and simple macroeconomic models. -
Onlinearities in the Impact of Economic Growth on the Environment
76th Annual Congress of the International Institute of Public Finance | O... https://www.conftool.pro/iipf2020/index.php?page=browseSessions&pri... Conference Agenda Session Overview Date: Tuesday, 18/Aug/2020 11:00am - 1:30pm IIPF Board of Management meeting (on invitation only) 2:00pm - 4:00pm IIPF General Assembly of members (on invitation and registration only) 1 von 50 08.12.2020, 13:50 76th Annual Congress of the International Institute of Public Finance | O... https://www.conftool.pro/iipf2020/index.php?page=browseSessions&pri... Date: Wednesday, 19/Aug/2020 8:00am - 9:30am Opening and Plenary I: Keynote I: Ottmar Edenhofer (Potsdam Institute for Climate Impact Research and Technical University Berlin), "Pigou in the Post-Corona Era" Session Chair: Clemens Fuest, ifo Institute and LMU Munich 9:45am - 11:15am A01: Corporate Taxation and R&D 9:45am - 10:07am Tax Reform, Demand Shocks, and Firms’ R&D Investment Jing Xing1, Katarzyna Bilicka2, Xipei Hou1 1Antai College of Economics and Management Shanghai Jiao Tong University, China, People's Republic of; 2Utah State University and Oxford University Centre for Business Taxation, John Huntsman Business School We investigate how policy-induced positive demand shocks affect firms’ R&D investment by utilizing a major tax reform in China beginning in 2012 as a natural experiment. The replacement of the business tax with the value- added tax led to increased demand for firms in service industries. Using a sample of listed firms during the period 2009-2017, we show that affected firms increased their R&D investment significantly as a response to improved demand conditions, relative to firms that were not subject to the policy reform. -
Prof. Dr. Ottmar Edenhofer
PROF. DR. OTTMAR EDENHOFER Prof. Dr. rer. pol., Dipl.-Vw. CURRENT POSITIONS Director and Chief Economist at the Potsdam Institute for Climate Impact Research (PIK), PIK’s research has been rated “excellent” during the last Leibniz evaluation Director of the Mercator Research Institute on Global Commons and Climate Change (MCC), work of MCC received “excellent” evaluation by independent scientific committee Professor of the Economics of Climate Change at the Technische Universität (TU) Berlin CONTACT Potsdam Institute for Climate Impact Research| Telegrafenberg A31 | 14473 Potsdam | Germany Phone +49 (0)331 288 2565 [email protected] www.pik-potsdam.de/members/edenh PROFILE Ottmar Edenhofer is Professor at the Technische Universität Berlin and widely considered to be one of the world’s leading experts on the economics of climate change. He is Director and Chief Economist at the Potsdam Institute for Climate Impact Research (PIK). From 2007 to 2018 he headed PIK’s Research Domain 3 Sustainable Solutions, which received an excellent evaluation by the Leibniz Society in 2014. Following the strategic decision of PIK in 2007 to become more solution-oriented with interdisciplinary Research Domains, Ottmar Edenhofer formed the research agenda of this department. He was pioneering in giving the institute, which traditionally focused on large-scale quantitative computational modelling of the earth and its processes, a social science research agenda providing rigorous and meaningful information on climate change mitigation to society. In 2012 he was appointed director of the newly founded Mercator Research Institute on Global Commons and Climate Change (MCC). The work of the MCC was considered “excellent” by an external scientific evaluation board commissioned by Stiftung Mercator in 2015. -
Report of the High-Level Commission on Carbon Prices I MAY 29, 2017
Report of the High-Level Commission on Carbon Prices I MAY 29, 2017 Report of the High-Level Commission on Carbon Prices supported by: MINISTÈRE DE LA TRANSITION ÉCOLOGIQUE ET SOLIDAIRE THE COMMISSION: 6OBJECTIVES During the 22nd Conference of the Parties (COP) of the United Nations Framework Convention on Climate Change (UNFCCC) held in Marrakech, Morocco, in 2016, at the invitation of the Co- Chairs of the Carbon Pricing Leadership Coalition (CPLC) High-Level Assembly, Ségolène Royal and Feike Sijbesma, Joseph Stiglitz, Nobel Laureate in Economics, and Lord Nicholas Stern, accepted to chair a new High-Level Commission on Carbon Prices comprising economists, and climate change and energy specialists from all over the world, to help spur successful implementation of the Paris Agreement. The Commission’s objective is to identify indicative corridors of carbon prices that can be used to guide the design of carbon-pricing instruments and other climate policies, regulations, and measures to incentivize bold climate action and stimulate learning and innovation to deliver on the ambition of the Paris Agreement and support the achievement of the Sustainable Development Goals. Commission Chairs: Commission Members: Joseph E. Stiglitz Maosheng Duan Elisabeth Moyer (University Professor, (Director of China Carbon Market (Associate Professor, Department of Columbia University, United States) Center of Tsinghua University, China) the Geophysical Sciences, University of Chicago, United States) Nicholas Stern Ottmar Edenhofer (IG Patel Professor of Economics (Deputy Director and Chief Economist Mari Pangestu and Government and Chair of the at the Potsdam Institute for Climate (Professor of International Economics Grantham Research Institute, London Impact Research, Germany) at the University of Indonesia; former School of Economics and Political Minister of Trade, Indonesia) Science, United Kingdom) Gaël Giraud (Chief Economist of the Agence Priyadarshi R. -
Reports of Coals Terminal Decline May Be Exaggerated
Environmental Research Letters LETTER • OPEN ACCESS Recent citations Reports of coal’s terminal decline may be - India’s energy and emissions future: an interpretive analysis of model scenarios exaggerated Navroz K Dubash et al To cite this article: Ottmar Edenhofer et al 2018 Environ. Res. Lett. 13 024019 View the article online for updates and enhancements. This content was downloaded from IP address 193.174.18.1 on 21/01/2019 at 10:09 Environ. Res. Lett. 13 (2018) 024019 https://doi.org/10.1088/1748-9326/aaa3a2 LETTER Reports of coal’s terminal decline may be exaggerated OPEN ACCESS Ottmar Edenhofer1,2,3,JanChristophSteckel1,2,3,4, Michael Jakob1 and Christoph Bertram2 RECEIVED 1 Mercator Research Institute on Global Commons and Climate Change, Berlin, Germany 26 May 2017 2 Potsdam Institute for Climate Impact Research, Potsdam, Germany REVISED 3 Technische Universität Berlin, Department Economics of Climate Change, Berlin, Germany 22 September 2017 4 Author to whom any correspondence should be addressed. ACCEPTED FOR PUBLICATION 22 December 2017 E-mail: [email protected] PUBLISHED 7 February 2018 Keywords: Paris Agreement, coal, (I)NDCs, carbon lock-in Supplementary material for this article is available online Original content from this work may be used under the terms of the Abstract Creative Commons Attribution 3.0 licence. We estimate the cumulative future emissions expected to be released by coal power plants that are Any further distribution currently under construction, announced, or planned. Even though coal consumption has recently of this work must maintain attribution to declined and plans to build new coal-fired capacities have been shelved, constructing all these planned the author(s) and the coal-fired power plants would endanger national and international climate targets. -
Carbon Pricing and Transfers : Feasible and Effective Multilevel Climate
Carbon Pricing and Transfers Feasible and Effective Multilevel Climate Policy in Federations vorgelegt von Christina Roolfs Master of Sustainability Economics and Management ORCID: 0000-0001-7731-193X an der Fakultät VI - Planen Bauen Umwelt der Technischen Universität Berlin zur Erlangung des akademischen Grades Doktorin der Wirtschaftswissenschaften - Dr. rer. oec. - genehmigte Dissertation Promotionsausschuss: Vorsitzender: Prof. Dr. Stefan Heiland Gutachter: Prof. Dr. Ottmar Edenhofer Gutachter: Prof. Dr. Marco Runkel Gutachter: Prof. Dr. Matthias Kalkuhl Tag der wissenschaftlichen Aussprache: 16. November 2020 Berlin 2021 Abstract Regional and national governments face the challenge of enacting policies that rapidly decarbonize their economies so as to deliver on their climate targets. They need to fnd policy instruments that are both efective and feasible. Simultaneously reducing greenhouse gas emissions at multiple levels is a promising step forward. By analyzing the efectiveness and feasibility of multilevel climate policies in federal systems, this thesis translates Elinor Ostrom’s polycentric governance approach to formal public economics. General equilibrium models of low to medium complexity are developed and solved analytically and numerically for this purpose. The European Union (EU) serves as the primary example. In a nutshell, the following three results are generated: First, socially optimal transfers imply rich states being donors and poor states being recipients of carbon price revenues. From the perspective of rich states, these transfers may be too large and thus become politically infeasible. Second, choosing a uniform federal carbon price that maximizes the utility of the richest state leads to a minimum federal carbon price to which all member states would agree. The existence of such a minimum federal price depends on the degree of wealth heterogeneity among member states; the federal transfer rules; and whether or not states anticipate federal transfers. -
TU Vorlesung
Green Growth and New Models of Prosperity Policy Instruments (Part 1) Berlin, 21 June 2013 Vorlesung im SS2013 an der Technischen Universität Berlin Fakultäten Planen, Bauen Umwelt & Wirtschaft und Management Prof. Dr. Ottmar Edenhofer Contents: Lecture Plan Date Topic 12.4. 19.4. 26.4. 03.5. 10.5. 17.5. 24.5. 31.5. 7.6. 14.6. 20.6., 4-6 pm, Over-/Underinvestment H1012 Commons 21.6. Policy Instruments (Part 1) 26.6., 2-4 pm, Policy Instruments (Part 2) H1012 28.6. (cancelled) 5.7. (cancelled) 12.7. Horizontal and Vertical Fiscal Federalism 2 Contents Part I Policy Instruments and the Commons (Part I): Foundations and Static Analysis • Externalities and Market Failure - Definition - Public good (commons) problem • Instruments to Control Pollution - Instruments & selection criteria - Prices vs. quantities • Rent Taxation and Public Investment - Basics of (land) rent taxation - Are (land) rents sufficient to finance a public good? 3 Bibliography for this Area Perman et al, Natural Resource and Environmental Economics, Chapters 5-8 Edenhofer, Ottmar; Linus Mattauch and Jan Siegmeier (2013). Hypergeorgism: When is Rent Taxation as a Remedy for Insufficient Capital Accumulation Socially Optimal?. Cesifo Working Paper 4144. George, Henry (1879/1912) Progress and Poverty: An Inquiry into the Cause of Industrial Depressions and of Increase of Want with Increase of Wealth: The Remedy . 4th edition. [Available at: www.econlib.org/library/YPDBooks/George/grgPP.html] Mattauch, Linus; Jan Siegmeier; Ottmar Edenhofer and Felix Creutzig (2013). Financing public capital through land rent taxation: A macroeconomic Henry George Theorem, mimeo 4 Motivation Consider the case of climate change: global cost-benefits-analysis delivers optimal emission-path. -
Facing the Economic and Institutional Challenges
3 Beyond the 2°C limit: Facing the economic and institutional challenges Ottmar Edenhofer, Susanne Kadner, Christoph von Stechow and Jan Minx Mercator Research Institute on Global Commons and Climate Change (MCC), Potsdam Institute for Climate Impact Research (PIK) and Technische Universität Berlin; PIK; MCC, PIK and Technische Universität Berlin; MCC, PIK and Hertie School of Governance With very high risk of severe, widespread and irreversible impacts globally due to unabated anthropogenic climate change, we argue in this chapter that the 2°C limit can be justified by the synthesis of available scientific evidence as an application of the precautionary principle. In principle, the risks of mitigation differ fundamentally from the risks of climate change in terms of their nature, timescale, magnitude and persistence. Humankind has the technological means to solve the problem. However, the challenges of stringent mitigation action are enormous and have been increasing over the last decade because of the ongoing renaissance of coal, which does not allow for a decoupling of economic and population growth from emissions. Keeping a greater than 66% probability of staying below the 2°C limit, for example, would require current emission levels to be reduced by 40-70% by 2050, and emission levels of zero and below by the end of the 21st century. This requires a large-scale transformation in the way we produce and use energy, as well as how we use land. The most fundamental challenges are the oversupply of fossil fuels and the risks associated with negative emissions technologies, or high bioenergy deployment. A further delay in mitigation action substantially increases the difficulty of, and narrows the options for, this transformation.