Royalties and Regional Disparities
Jaime Bonet,
Gerson Perez-Valbuena and
Eduardo Haddad
Chapter Chapter 17 in The Colombian Economy and Its Regional Structural Challenges, 2023, pp 455-473 from Springer
Abstract:
Abstract The extraction of non-renewable natural resources has the potential to generate revenue to finance government activities. One of the most used tax tools is the collection of royalties from mining projects because they are usually unrelated to their profitability. Royalties often have different channels to have a positive impact on regional development, which in some cases can have opposite effects. Using a computable regional equilibrium model, this chapter estimates the general equilibrium effects of royalty payments by mining activities in the regional development in Colombia. The results indicate that the benefits in welfare and the reduction of regional inequalities due to the imposition of royalties, are greater than the losses that it can generate in the regional output. Further results show the presence of regional and sectoral heterogeneities.
Date: 2023
References: Add references at CitEc
Citations:
There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.
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:spr:adspcp:978-3-031-22653-3_17
Ordering information: This item can be ordered from
http://www.springer.com/9783031226533
DOI: 10.1007/978-3-031-22653-3_17
Access Statistics for this chapter
More chapters in Advances in Spatial Science from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().