The taxation of nonrenewable natural resources

Gérard Gaudet and Pierre Lasserre

Cahiers de recherche from Universite de Montreal, Departement de sciences economiques

Abstract: We provide an analytical overview of the distortionary effects of some common forms of taxes faced by the nonrenewable resources sector of the economy. In the category of taxes meant specifically to capture the resource rent, we look at a specific severance tax, an ad valorem severance tax, a profit tax and a ‘lump-sum’ tax, with emphasis on their effects on the extraction decisions over time and on the initial reserves to be developed. In the category of taxes meant for all sectors of the economy, we look at the corporate income tax and its special provision for the resource sector in the form of a depletion allowance, with emphasis on the effects on the intra-industry resource extraction decisions and on the inter-industry allocation of investment.

Keywords: Nonrenewable resources; taxation; neutrality; distortion; resource rent; capital allocation (search for similar items in EconPapers)
JEL-codes: H21 Q31 Q38 (search for similar items in EconPapers)
Pages: 42 pages
Date: 2013
New Economics Papers: this item is included in nep-acc, nep-env, nep-pbe and nep-pub
References: View complete reference list from CitEc
Citations: View citations in EconPapers (13)

Downloads: (external link)
http://hdl.handle.net/1866/10090 (application/pdf)

Related works:
Working Paper: The taxation of nonrenewable natural resources (2015)
Working Paper: The Taxation of Nonrenewable Natural Resources (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:mtl:montde:2013-10

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