Working papers
Pollution versus inequality: tradeoffs for fiscal policy, with Thomas Seegmuller. Accepted at Macroeconomic Dynamics.
Abstract: This paper investigates the effect of taxation of polluting products and redistribution on pollution, income and welfare inequalities. We consider a two-sector Ramsey model with a green and a polluting good, two types of households and a subsistence level of consumption for the polluting good. The environmental tax is always effective in reducing pollution regardless of the level of subsistence consumption. However, this level, together with the redistribution rate, matters at the individual level as it shapes the impact of the environmental policy on individual consumption and welfare. Looking at the stability properties of the economy, a high subsistence level of polluting consumption leads to instability or indeterminacy of the steady state, while the environmental externality reduces the scope for indeterminacy. Increasing the tax rate and redistributing more to the worker affect the occurrence of indeterminacy and instability. Considering the subsistence level of consumption and the level of redistribution among households are of importance as it determines the effects of environmental tax policy in the long term and the stability of the economy in the short term.
Presentation: FIRE Workshop 2021 (Marseille, France), ASSET Conference 2021 (Marseille, France), AMSE PhD Seminar (Online), LORDE Workshop 2022 (Rouen, France), ICMAIF 2022 (Rethymno, Crete), SURED 2022 (Ascona, Switzerland), EAERE 2022 (Rimini, Italy), FAERE 2022 (Rouen, France)
Work in progress
Taxing incognito: optimal climate policy and inequality. Draft available soon.
Abstract: This paper explores optimal alternatives to carbon taxation using already existing taxes in the economy and their impact on inequality. I build a two-sector Ramsey model with heterogeneous agents and a climate component, in which climate damages harm the final good sector's productivity and individual utility through temperature changes. I find that there exists an alternative to the standard carbon tax, both in a first- and second-best setting. Under this alternative, the carbon tax on emissions is replaced by a tax on total energy production and a subsidy to abatement. The impact on inequality is the same as a carbon tax. Studying a third-best policy in which the government also has constraints on the level of the subsidy to abatement, I find that the entire tax schedule is impacted. This creates additional distortions on income taxes and hence on inequality.
Presentation: AMSE PhD Seminar 2023 (Marseille, France), LORDE Workshop 2023 (Paris, France), CORE Brownbag Seminar (UCLouvain), SEEMS Seminar (UvA), LAGV 2023 (Marseille, France), ASSET 2023 (Lisbon, Portugal), Majvik workshop 2024 (Masala, Finland)
Reverse education and endogenous green preferences in environmental policies. Draft available soon.
Abstract: This paper studies the impact of education of younger generations on pro-environmental behavior of older ones through preferences. I develop an OLG model in which taxation of polluting production finances education of younger generations and public mitigation. Older individuals, being either green or brown, decide whether to engage in private maintenance to enhance environmental quality. I find that raising the tax rate improves environmental quality if its persistence over time is relatively low and if a relatively high share of the tax revenue is used for education purposes. Endogenous preferences play a key role in the efficiency of the policy as it impacts thresholds on persistence and tax revenue use above or under which the policy harms environmental quality. Because environmental quality and private mitigation are substitutes, raising the tax rate can lead to a crowding out of private mitigation, in which case engaging in public mitigation might be better for the environment. Introducing private abatement from the firm fosters the positive role of the environmental policies. This leaves more room for green growth, rather than degrowth. Endogenous types and reverse cultural transmission strengthen the role of school in transmitting environmental knowledge.
Presentation: LORDE 2025 Workshop (Marseille, France), Helsinki GSE Environmental Economics seminar, NAERE 2025 Workshop (Copenhaguen, Denmark)