EconPapers    
Economics at your fingertips  
 

An empirical analysis of mining costs and mining royalties in Queensland local government

Simone Valle de Souza, Brian Dollery () and Boyd Blackwell

Energy Economics, 2018, vol. 74, issue C, 656-662

Abstract: Mining is almost invariably contentious since it not only generates significant income, including tax revenues, but also simultaneously inflicts heavy costs on the inhabitants of the areas in which mining occurs. In terms of Australian state and territory legal regimes, mining royalties accrue to state governments and not to the Local Government Areas (LGAs) in which mining occurs, despite the fact that mining imposes heavy localised costs, especially on local public infrastructure. There is thus a disjunction between the spatial incidence of the benefits and costs of mining, sometimes termed the ‘resource-return mismatch’, especially since mining predominantly takes place in regional, rural and remote areas whereas the bulk of mining royalties are expended in metropolitan centres. Situating our empirical analysis in the institutional milieu of Queensland local government over the period 2011 to 2015, we examine the relationship between the number of mining assessments and per capita operating expenditure of local authorities at the level of LGAs. We find that mining imposes significant costs on local government and there is thus a mismatch between the costs and revenues associated with mining at the local level. We offer various possible remedial policy measures.

Keywords: Mining; Local government; Royalties; Municipal revenue; Municipal costs; Resource-return mismatch (search for similar items in EconPapers)
JEL-codes: H21 H23 H71 H72 Q32 Q33 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0140988318302652
Full text for ScienceDirect subscribers only

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:eee:eneeco:v:74:y:2018:i:c:p:656-662

DOI: 10.1016/j.eneco.2018.07.016

Access Statistics for this article

Energy Economics is currently edited by R. S. J. Tol, Beng Ang, Lance Bachmeier, Perry Sadorsky, Ugur Soytas and J. P. Weyant

More articles in Energy Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().

 
Page updated 2025-03-19
Handle: RePEc:eee:eneeco:v:74:y:2018:i:c:p:656-662