Some Effects of Reducing Excess in Infrastructure Charges on the Export Coal Industry

John Freebairn

The Economic Record, 1989, vol. 65, issue 4, 345-356

Abstract: Excess rail freight and port charges on the Australian export coal industry amount to over 10 per cent of export prices and represent a form of ad valorem tax. Efficiency and distributional effects of removing the excess charges are assessed using a quantitative commodity model and a qualitative general equilibrium assessment. Removal of the excess charge would increase production by 29 per cent by the year 2000, slightly reduce upon prices and generate national efficiency gains of over $150 million a year. The mining industry and the Federal government gain and the State governments lose

Date: 1989
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