Optimal taxation versus amenities provision and pricing: a contribution to the foundation of amenities funding mechanism
Résumé
In this paper, we discuss the challenge of financing the conservation of amenities by looking at it as a problem of setting a price for impure or excludable public goods. We try to clarify the nuances that exist in this matter. Additionally, we propose an integrated model for nonlinear income taxation, amenities provision, and pricing in a large economy where people have private information about their amenities preferences. We consider amenities to be an excludable public good and try to achieve the best allocation possible, keeping in mind the various attributes of amenities. We take into account incentive compatibility and individual rationality conditions while analyzing the problem. We use a renegotiation proofness condition on the consumption side of allocation to write the incentive constraints for the multidimensional hidden characteristics as multiple unidimensional constraints.