Taxation of a Non-renewable Resource and Inequality in an R&D-based Growth Model

Ken Tabata

No 272, Discussion Paper Series from School of Economics, Kwansei Gakuin University

Abstract: This paper analyses the effects of resource taxation policies aimed at sustainable use of resources on economic growth and consumption inequality using an R&D-based growth model with heterogeneous households. Resource taxes affect the extraction rate of non-renewable resources only if the tax rate changes over time. This paper shows that the lower growth rate of the ad valorem tax on resource use slows resource extraction and promotes economic growth but increases consumption inequality. If resource tax policies are to promote economic growth without increasing consumption inequality, resource tax revenues must be allocated for redistributive purposes. This paper also calibrates the model for quantitative analysis and finds that the lower growth rate of the tax on resource use causes a non-negligible increase in consumption inequality.

Keywords: Non-renewable resources; Endogenous growth; Consumption inequality; R&D (search for similar items in EconPapers)
JEL-codes: E62 H23 O30 Q32 Q38 (search for similar items in EconPapers)
Pages: 33 pages
Date: 2024-05
New Economics Papers: this item is included in nep-ene, nep-env, nep-gro, nep-mac and nep-pbe
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://192.218.163.163/RePEc/pdf/kgdp272.pdf First version, 2024 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:kgu:wpaper:272

Access Statistics for this paper

More papers in Discussion Paper Series from School of Economics, Kwansei Gakuin University Contact information at EDIRC.
Bibliographic data for series maintained by Toshihiro Okada ().