Optimum Commodity Taxation with a Non-Renewable Resource

Julien Daubanes () and Pierre Lasserre

No 5270, CESifo Working Paper Series from CESifo

Abstract: Under standard assumptions, optimum commodity taxation (OCT) should target non-renewable resources (NRRs) in priority. NRRs should be taxed at a higher rate than otherwise-identical conventional commodities. NRR substitutes and complements should receive a particular tax treatment. When reserves are endogenous, OCT for NRRs distorts both developed reserves, which are reduced, and their depletion, which is slowed down. Reserves are a form of capital and royalties tax its income: our results contradict Chamley’s conclusion that capital should not be taxed in the long run. In a NRR-importing economy, Ramsey taxes are further increased because they allow the capture of foreign rents.

Keywords: optimum commodity taxation; inverse elasticity rule; non-renewable resources; Hotelling resource; supply elasticity; demand elasticity; capital income taxation (search for similar items in EconPapers)
JEL-codes: H21 Q31 Q38 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Related works:
Working Paper: Optimum Commodity Taxation with a Non-Renewable Resource (2015)
Working Paper: Optimum Commodity Taxation with a Non-Renewable Resource (2012)
Working Paper: Optimum Commodity Taxation with a Non-Renewable Resource (2011)
Working Paper: Optimum Commodity Taxation with a Non-Renewable Resource (2011)
Working Paper: Optimum Commodity Taxation with a Non-Renewable Resource (2011)
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