Book contents
- Frontmatter
- PREFACE
- Contents
- Chapter 1 A PREVIEW
- Chapter 2 RESOURCE ALLOCATION IN A TIMELESS WORLD
- Chapter 3 EXTERNALITIES
- Chapter 4 INTERTEMPORAL EQUILIBRIUM
- Chapter 5 RENEWABLE RESOURCES: SOME ECOLOGICAL AND ENVIRONMENTAL MODELS
- Chapter 6 EXHAUSTIBLE RESOURCES: AN INTRODUCTION
- Chapter 7 PRODUCTION WITH EXHAUSTIBLE RESOURCES
- Chapter 8 RESOURCE DEPLETION AND CAPITAL ACCUMULATION IN A COMPETITIVE ECONOMY
- Chapter 9 MEASURABILITY, COMPARABILITY AND THE AGGREGATION OF INTERGENERATIONAL WELFARES
- Chapter 10 THE OPTIMAL DEPLETION OF EXHAUSTIBLE RESOURCES
- Chapter 11 IMPERFECT COMPETITION AND EXHAUSTIBLE RESOURCES
- Chapter 12 TAXATION OF EXHAUSTIBLE RESOURCES
- Chapter 13 UNCERTAINTY, INFORMATION AND THE ALLOCATION OF RISK
- Chapter 14 UNCERTAINTY AND THE ALLOCATION OF RESOURCES
- Chapter 15 PRICE MOVEMENTS IN RESOURCE MARKETS
- Chapter 16 CONCLUSIONS
- BIBLIOGRAPHY
- INDEX
Chapter 12 - TAXATION OF EXHAUSTIBLE RESOURCES
Published online by Cambridge University Press: 04 April 2011
- Frontmatter
- PREFACE
- Contents
- Chapter 1 A PREVIEW
- Chapter 2 RESOURCE ALLOCATION IN A TIMELESS WORLD
- Chapter 3 EXTERNALITIES
- Chapter 4 INTERTEMPORAL EQUILIBRIUM
- Chapter 5 RENEWABLE RESOURCES: SOME ECOLOGICAL AND ENVIRONMENTAL MODELS
- Chapter 6 EXHAUSTIBLE RESOURCES: AN INTRODUCTION
- Chapter 7 PRODUCTION WITH EXHAUSTIBLE RESOURCES
- Chapter 8 RESOURCE DEPLETION AND CAPITAL ACCUMULATION IN A COMPETITIVE ECONOMY
- Chapter 9 MEASURABILITY, COMPARABILITY AND THE AGGREGATION OF INTERGENERATIONAL WELFARES
- Chapter 10 THE OPTIMAL DEPLETION OF EXHAUSTIBLE RESOURCES
- Chapter 11 IMPERFECT COMPETITION AND EXHAUSTIBLE RESOURCES
- Chapter 12 TAXATION OF EXHAUSTIBLE RESOURCES
- Chapter 13 UNCERTAINTY, INFORMATION AND THE ALLOCATION OF RISK
- Chapter 14 UNCERTAINTY AND THE ALLOCATION OF RESOURCES
- Chapter 15 PRICE MOVEMENTS IN RESOURCE MARKETS
- Chapter 16 CONCLUSIONS
- BIBLIOGRAPHY
- INDEX
Summary
Introduction
Resource-based industries are typically subject to substantial taxation. In addition to conventional profits or corporation taxes, they are typically required to pay royalties, revenue taxes, excess profits taxes, and are subject as well to a variety of other forms of taxation. It is not coincidental that they are so burdened. As we have seen in earlier chapters, a large part of their profit may be pure rent, and this is obviously a tempting target for taxation. Indeed, it is well known that under certain circumstances one can tax away pure rents with no loss of allocative efficiency and, as we shall see, there are certain forms of tax which can be levied on an extractive industry without distortion. However, it is certainly not the case that all conceivable taxes on extractive industries produce no deadweight loss, and in the ensuing sections we consider the impact of some of the most widely used taxes. We also return once again to the problem of the commons, discussed in Chapter 3 and, making use of techniques and results from the last chapter, analyse the dynamic version of this problem. It is of particular interest in the present context because a resolution of this problem requires the introduction of a fairly complex dynamic tax scheme, and provides an interesting example of taxes as a corrective force, rather than as potentially distortionary revenue raisers.
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- Economic Theory and Exhaustible Resources , pp. 361 - 376Publisher: Cambridge University PressPrint publication year: 1980
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