Hostname: page-component-7479d7b7d-wxhwt Total loading time: 0 Render date: 2024-07-10T07:21:58.403Z Has data issue: false hasContentIssue false
  • English
  • Français

Mineral-Taxation in a Stages-of-Production Framework(*)

Published online by Cambridge University Press:  17 August 2016

Margaret Slade
Margaret Slade*
Affiliation:
Department of Economics, The University of British Columbia.
Get access

Extract

Government interference in private markets for exhaustible resources is a ubiquitous phenomenon. Each level of government — federal, state or provincial, and even local — has its own tax policy. Tax-policy instruments include royalties, depletion allowances, severance taxes, price controls and supports, environmental regulations, freight subsidies, profit taxes, and property taxes, to name only a few.

These taxes may be levied at every stage of production. For example, property and some ad valorem taxes are levied on ores in the ground, severance taxes are paid when the ore leaves the ground, royalties and depletion allowances may be collected at the first sale (after some degree of processing), and price controls may be placed on finished products.

Not only does the government intervene in private resource markets with great regularity but the size of tax effects is not small. For example, depletion allowances in the United States have been as large as thirty three and one third percent of revenues. And price controls in some periods have kept petroleum prices at less than half world prices.

Type
Research Article
Information
Recherches Économiques de Louvain/ Louvain Economic Review , Volume 49 , Issue 4 , December 1983 , pp. 323 - 338
Copyright
Copyright © Université catholique de Louvain, Institut de recherches économiques et sociales 1983 

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

Footnotes

*

This paper was prepared for presentation at the Taxation and Natural Resources session in the Contemporary Policy Issues Series, Western Economic Association, Seattle, Washington, July 20, 1983.

References

REFERENCES CITED

Burness, H.S. (1973), On the Extraction of Nonreplenishable Natural Resources, Journal of Environmental Economies and Management, Vol. 3.Google Scholar
Conrad, R.F. and Hool, B. (1981), Resource Taxation with Heterogeneous Quality and Endogenous Reserves, Journal of Public Economics, Vol. 16.Google Scholar
Dasgupta, P., Heal, G.M. and Stiglitz, J.E. (1980), The Taxation of Exhaustible Resources, in Public Policy and the Tax System, Hughes, G.A. and Heal, G.M. (eds.), London: George Allen Unwin.Google Scholar
Pindyck, R.S. (1978), The Optimal Exploration and Production of Nonrenewable Resources, Journal of Political Economy, Vol. 86.Google Scholar
Shephard, R.S. (1953), Cost and Production Functions, Princeton: Princeton University Press.Google Scholar
Slade, M.E. (1982a), Taxation of Nonrenewable Resources: A Production-Function Approach, PNRE Working Paper N° 81, Department of Economics, University of British Columbia.Google Scholar
Slade, M.E. (1982b), Trends in Natural-Resource Commodity Prices: An Analysis of the Time Domain, Journal of Environmental Economics and Management, Vol. 9.Google Scholar
Slade, M.E. (1984), Tax Policy and the Supply of Exhaustible Resources: Theory and Practice, Land Economics, Vol. 60.Google Scholar
Sweeney, J.L. (1977), Economics of Depletable Natural Resources: Market Forces and Intertemporal Bias, The Review of Economic Studies, Vol. 44.Google Scholar