Journal of the Korean Operations Research and Management Science Society (한국경영과학회지)

The Korean Operations Research and Management Science Society (한국경영과학회)
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Electronic Commerce and Environmental Welfare: An Analysis of Optimal Taxation

전자상거래와 환경후생

  • Lee, Sang-Ho (Department of Economics, Chonnam National University)
  • Received : 2010.10.20
  • Accepted : 2011.01.10
  • Published : 2011.03.31
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Abstract

This article examines the impact of electronic commerce on environmental welfare. In particular, we analyze a game model of price competition between offline and online firms when consumption taxes are imposed on both offline and online transactions that produce environmental pollution. We investigate the properties of optimal taxation between offline and online markets and demonstrate that there is an optimal difference between the two taxes, depending upon not only the transaction cost between offline and online consumption, but also the environmental damage cost. We also investigate the effect of tax-free online transactions on tax revenues, and the financial feasibility of the optimal taxation.

Keywords

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