Do oil tariffs lower wages?

Henry Thompson

Open Economies Review, 1994, vol. 5, issue 2, 202 pages

Abstract: An oil tariff has potential to alter the pattern of production and income distribution across productive factors. This paper use a general equilibrium model of production and trade with inputs of capital, labor, and international energy to examine the effects of an oil tariff. Under a range of conditions, higher energy prices created by oil tariffs would lower the ratio of wages to capital rents, and production of labor intensive goods would fall. This paper concentrates on the potential of oil tariffs to alter patterns of production and income distribution. Copyright Kluwer Academic Publishers 1994

Keywords: oil tariffs; energy tax; income distribution; wage-rent ratio (search for similar items in EconPapers)
Date: 1994
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DOI: 10.1007/BF01000487

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