Efficiency and Equity of an Outdoor Recreation Equipment Tax to Fund Public Lands

An analysis of the efficiency and equity implications of a federal excise tax on outdoor recreation equipment to improve funding for public land maintenance finds that such a tax would cause a sizable welfare loss and cost low-income households more as a share of income than higher-income households. However, the study also shows that raising the same amount of revenue through national park entrance fees would require large, and likely unacceptable, increases in fees.

Working Paper (20-24) by Margaret A. Walls and Matthew Ashenfarb — 1 minute read — Dec. 23, 2020 (Updated October 1, 2021)