Energy Tariffs, Production, and Income in a Small Open Economy

Henry Thompson

No auwp2013-11, Auburn Economics Working Paper Series from Department of Economics, Auburn University

Abstract: A tariff on imported energy in a small open economy alters production, redistributes income, and generates tariff revenue. The present paper includes tariff revenue in a general equilibrium economy producing two traded goods with imported energy and domestic capital and labor. An energy tariff reduces energy intensive output and domestic factor income but payment to one domestic factor may rise as might the other output. Tariff revenue, not included in the related theoretical literature, is shown to be concave in the tariff. A simulation illustrates these general equilibrium properties including the revenue maximizing tariff.

Keywords: Energy Tariffs; Tariff Revenue; General Equilibrium (search for similar items in EconPapers)
JEL-codes: F11 (search for similar items in EconPapers)
Date: 2013-08
New Economics Papers: this item is included in nep-ene
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://cla.auburn.edu/econwp/Archives/2013/2013-11.pdf (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:abn:wpaper:auwp2013-11

Access Statistics for this paper

More papers in Auburn Economics Working Paper Series from Department of Economics, Auburn University Contact information at EDIRC.
Bibliographic data for series maintained by Hyeongwoo Kim (gmmkim@gmail.com).