IDEAS home Printed from https://ideas.repec.org/a/bla/ecorec/v69y1993i1p56-60.html
   My bibliography  Save this article

On the Neutrality of the Resource Rent Tax

Author

Abstract

This paper investigates the existence of an investtnent'neutral Resource Rent Tax using a model of optimal investment to extract an unknown quantity of resource stock. This model is solved by numerical methods to show that the levels of profit margin and resource stock uncertainty are key parameter values in determining both the existence and the characteristics of an investment‐neutral Resource Rent Tax.

Suggested Citation

  • Rob Fraser, 1993. "On the Neutrality of the Resource Rent Tax," The Economic Record, The Economic Society of Australia, vol. 69(1), pages 56-60, March.
    • Handle: RePEc:bla:ecorec:v:69:y:1993:i:1:p:56-60
    DOI: 10.1111/j.1475-4932.1993.tb01798.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1475-4932.1993.tb01798.x
    Download Restriction: no
    File URL: https://libkey.io/10.1111/j.1475-4932.1993.tb01798.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Fraser, Rob W., 1988. "A Method For Evaluating Supply Response To Price Underwriting," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 32(1), pages 1-15, April.
    2. Ravi Kanbur, S. M., 1982. "Increases in risk with kinked payoff functions," Journal of Economic Theory, Elsevier, vol. 27(1), pages 219-228, June.
    3. Rob W. Fraser, 1988. "A Method For Evaluating Supply Response To Price Underwriting," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 32(1), pages 22-36, April.
    4. repec:bla:ecorec:v:59:y:1983:i:166:p:232-44 is not listed on IDEAS
    5. Garnaut, Ross & Clunies Ross, Anthony, 1975. "Uncertainty, Risk Aversion and the Taxing of Natural Resource Projects," Economic Journal, Royal Economic Society, vol. 85(338), pages 272-287, June.
    6. repec:bla:ecorec:v:59:y:1983:i:167:p:365-74 is not listed on IDEAS
    7. CRAIG EMERSON and P. J. LLOYD, 1983. "Improving Mineral Taxation Policy in Australia," The Economic Record, The Economic Society of Australia, vol. 59(3), pages 232-244, September.
    8. R. W. Fraser & R. J. Van Noorden, 1983. "Extraction of an Exhaustible Resource: The Effects on Investment of Several Parameters Being Subject to Uncertainty," The Economic Record, The Economic Society of Australia, vol. 59(4), pages 365-374, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Joaquim Jose Martins Guilhoto & Silvio Massaru Ichihara & Fernando Antonio Slaibe Postali, 2006. "The Importance of the Oil and Gas Complex for the Brazilian Economy and Its States," ERSA conference papers ersa06p698, European Regional Science Association.
    2. Smith, James L., 2013. "Issues in extractive resource taxation: A review of research methods and models," Resources Policy, Elsevier, vol. 38(3), pages 320-331.
    3. Fraser, Rob W., 1999. "An analysis of the Western Australian gold royalty," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 43(1), pages 1-16, March.
    4. Fraser, Rob & Kingwell, Ross, 1997. "Can expected tax revenue be increased by an investment-preserving switch from ad valorem royalties to a resource rent tax?," Resources Policy, Elsevier, vol. 23(3), pages 103-108, September.
    5. Fraser, Rob, 1995. "An analysis of price-cap sliding-scale regulation," Utilities Policy, Elsevier, vol. 5(2), pages 115-119, April.
    6. Sunnevag, Kjell J., 2000. "Designing auctions for offshore petroleum lease allocation," Resources Policy, Elsevier, vol. 26(1), pages 3-16, March.
    7. Smith, B., 1999. "The Impossibility of a Neutral Resource Rent Tax," ANU Working Papers in Economics and Econometrics 1999-380, Australian National University, College of Business and Economics, School of Economics.
    8. Fraser, Rob W., 1999. "The state of resource taxation in Australia: 'An inexcusable folly for the nation'?," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 43(3), pages 1-20, September.
    9. Fraser, R., 2002. "An evaluation of the relative performance of alternatively structured resource rent taxes," Resources Policy, Elsevier, vol. 28(1-2), pages 1-6.
    10. Fraser, Rob W., 1998. "Lease allocation systems, risk aversion and the resource rent tax," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 42(2), pages 1-16.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Fraser, Rob W., 1998. "Lease allocation systems, risk aversion and the resource rent tax," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 42(2), pages 1-16.
    2. Fraser, Rob W., 1999. "An analysis of the Western Australian gold royalty," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 43(1), pages 1-16, March.
    3. John C. Quiggin, 1991. "Contradictory Predictions On Supply Response Under Stabilization: A Reconciliation," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 35(3), pages 285-294, December.
    4. Kym Anderson, 2020. "Trade Protectionism In Australia: Its Growth And Dismantling," Journal of Economic Surveys, Wiley Blackwell, vol. 34(5), pages 1044-1067, December.
    5. Fraser, Rob W. & Murrell, A.J., 1990. "The Australian Wool Corporation's Reserve Price Scheme: An Assessment of Price Stabilisation and Producer Benefits," 1990 Conference (34th), February 13-15, 1990, Brisbane, Australia 145082, Australian Agricultural and Resource Economics Society.
    6. Fraser, Rob W., 1993. "Welfare Effects of and Supply Responses to Recent Australian Agricultural Policy Changes," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 61(01), pages 1-7, April.
    7. R.W. Fraser, 1991. "Price‐Support Effects On Ec Producers," Journal of Agricultural Economics, Wiley Blackwell, vol. 42(1), pages 1-10, January.
    8. Fraser, Rob W., 1992. "An Analysis Of Willingness-To-Pay For Crop Insurance," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 36(1), pages 1-13, April.
    9. K. G. Williams & R. W. Fraser, 1985. "State Taxation of the Iron Ore Industry in Western Australia," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 18(1), pages 30-36, March.
    10. Craig Emerson & Ross Garnaut, 1984. "Mineral Leasing Policy: Competitive Bidding and the Resource Rent Tax Given Various Responses to Risk," The Economic Record, The Economic Society of Australia, vol. 60(2), pages 133-142, June.
    11. Fraser, Rob & Kingwell, Ross, 1997. "Can expected tax revenue be increased by an investment-preserving switch from ad valorem royalties to a resource rent tax?," Resources Policy, Elsevier, vol. 23(3), pages 103-108, September.
    12. Claire Chambolle & Sylvaine Poret, 2013. "When fairtrade contracts for some are profitable for others," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 40(5), pages 835-871, December.
    13. Fraser, Rob W., 1999. "The state of resource taxation in Australia: 'An inexcusable folly for the nation'?," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 43(3), pages 1-20, September.
    14. Fraser, R., 2002. "An evaluation of the relative performance of alternatively structured resource rent taxes," Resources Policy, Elsevier, vol. 28(1-2), pages 1-6.
    15. Fraser, Rob W., 1998. "Seasonal variability and a farmer's supply response to protein premiums and discounts," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 42(1), pages 1-9.
    16. R. W. Fraser, 1986. "Uncertainty and Production Quotas," The Economic Record, The Economic Society of Australia, vol. 62(3), pages 338-342, September.
    17. Fraser, Rob W., 1997. "Seasonal variability, land values and willingness-to-pay for a forward wheat contract with protein premiums and discounts," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 41(2), pages 1-17.
    18. Sarris, Alexander, 2002. "The demand for commodity insurance by developing country agricultural producers - theory and an application to cocoa in Ghana," Policy Research Working Paper Series 2887, The World Bank.
    19. Smith, B., 1999. "The Impossibility of a Neutral Resource Rent Tax," ANU Working Papers in Economics and Econometrics 1999-380, Australian National University, College of Business and Economics, School of Economics.
    20. Claire Chambolle & Sylvaine Poret, 2009. "Fair Trade Contracts for Some, an Insurance for Others," Working Papers hal-00367500, HAL.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:ecorec:v:69:y:1993:i:1:p:56-60. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/esausea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.