IDEAS home Printed from https://ideas.repec.org/a/cpp/issued/v26y2000i1p35-49.html
   My bibliography  Save this article

Taxing Hydroelectricity in Ontario

Author

Listed:
  • David W. Gillen
  • Jean-François Wen

Abstract

Using data from the financial statements of Ontario Hydro and an observed cost of importing electricity to the province, we provide an estimate of the hydroelectric rent that is potentially available in Ontario as tax revenue. Our results suggest that the existing water charges in Ontario can be raised ten-fold to capture this rent. We assess the impact that fully taxing the rent would have on the prices of electricity and manufacturing products, given that a substantial portion of the potential rent is currently used implicitly to subsidize electricity consumption. We relate our findings to the ongoing restructuring of the electricity market in Ontario.

Suggested Citation

  • David W. Gillen & Jean-François Wen, 2000. "Taxing Hydroelectricity in Ontario," Canadian Public Policy, University of Toronto Press, vol. 26(1), pages 35-49, March.
    • Handle: RePEc:cpp:issued:v:26:y:2000:i:1:p:35-49
    as

    Download full text from publisher

    File URL: http://links.jstor.org/sici?sici=0317-0861%28200003%2926%3A1%3C35%3ATHIO%3E2.0.CO%3B2-O
    Download Restriction: only available to JSTOR subscribers
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Garnaut, Ross & Clunies-Ross, Anthony, 1983. "Taxation of Mineral Rents," OUP Catalogue, Oxford University Press, number 9780198284543.
    2. Megginson, William L & Nash, Robert C & van Randenborgh, Matthias, 1994. "The Financial and Operating Performance of Newly Privatized Firms: An International Empirical Analysis," Journal of Finance, American Finance Association, vol. 49(2), pages 403-452, June.
    3. Cameron, T. A. & Schwartz, S. L., 1979. "Sectoral energy demand in Canadian manufacturing industries," Energy Economics, Elsevier, vol. 1(2), pages 112-118, April.
    4. Taher, M. A. & McMillan, M. L., 1984. "Production relationships in selected canadian manufacturing industries with disaggregated material inputs," Resources and Energy, Elsevier, vol. 6(4), pages 373-396, December.
    5. Bernard, J.T., 1993. "Hydroelectricity, Royalties and Industrial Competitiveness," Papers 93-04, Queen's at Kingston - School of Policy Studies.
    6. John McMillan, 1994. "Selling Spectrum Rights," Journal of Economic Perspectives, American Economic Association, vol. 8(3), pages 145-162, Summer.
    7. Taher, M. A. & McMillan, M. L. & Buse, A. & Gillen, D. W., 1985. "Renewable and non-renewable resource demand in Canadian manufacturing industries," Resources and Energy, Elsevier, vol. 7(2), pages 217-239, June.
    8. Glenn Jenkins & RICHARD ZUKER, 1984. "Blue Gold: Hydro-Electric Rent In Canada," Development Discussion Papers 1984-01, JDI Executive Programs.
    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. Yris D. FONDJA WANDJI & Jules SADEFO KAMDEM, 2020. "La rente hydroélectrique en Afrique : Une évaluation avec taxation et optimisation des coûts totaux de production," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 52, pages 147-170.
    2. Banfi, Silvia & Filippini, Massimo, 2010. "Resource rent taxation and benchmarking--A new perspective for the Swiss hydropower sector," Energy Policy, Elsevier, vol. 38(5), pages 2302-2308, May.
    3. International Monetary Fund, 2011. "Iceland: Advancing Tax Reform and the Taxation of Natural Resources," IMF Staff Country Reports 2011/138, International Monetary Fund.
    4. Massarutto, Antonio & Pontoni, Federico, 2015. "Rent seizing and environmental concerns: A parametric valuation of the Italian hydropower sector," Energy Policy, Elsevier, vol. 78(C), pages 31-40.
    5. Shrestha, Ram M. & Abeygunawardana, A.M.A.K., 2009. "Evaluation of economic rent of hydropower projects," Energy Policy, Elsevier, vol. 37(5), pages 1886-1897, May.
    6. Banfi, Silvia & Filippini, Massimo & Mueller, Adrian, 2005. "An estimation of the Swiss hydropower rent," Energy Policy, Elsevier, vol. 33(7), pages 927-937, May.

    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. Aaron Tornell, 1999. "Privatizing the Privatized," NBER Working Papers 7206, National Bureau of Economic Research, Inc.
    2. David Boles De Boer & Lewis Evans, 1996. "The Economic Efficiency of Telecommunications in a Deregulated Market: The case of New Zealand," The Economic Record, The Economic Society of Australia, vol. 72(216), pages 24-35, March.
    3. Haikun Zhu, 2018. "Social Stability and Resource Allocation within Business Groups," Working Papers Series 79, Institute for New Economic Thinking.
    4. Hongpeng Guo & Zhihao Lv & Junyi Hua & Hongxu Yuan & Qingyu Yu, 2021. "Design of Combined Auction Model for Emission Rights of International Forestry Carbon Sequestration and Other Pollutants Based on SMRA," Sustainability, MDPI, vol. 13(20), pages 1-18, October.
    5. Bozec, Richard, 2004. "L’analyse comparative de la performance entre les entreprises publiques et les entreprises privées : le problème de mesure et son impact sur les résultats," L'Actualité Economique, Société Canadienne de Science Economique, vol. 80(4), pages 619-654, Décembre.
    6. Carlo Cambini & Yossi Spiegel, 2016. "Investment and Capital Structure of Partially Private Regulated Firms," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 25(2), pages 487-515, April.
    7. John McMillan, 2003. "Market Design: The Policy Uses of Theory," American Economic Review, American Economic Association, vol. 93(2), pages 139-144, May.
    8. Lu, Susan Feng & Dranove, David, 2013. "Profiting from gaizhi: Management buyouts during China’s privatization," Journal of Comparative Economics, Elsevier, vol. 41(2), pages 634-650.
    9. Barberis, Nicholas & Maxim Boycko & Andrei Shleifer & Natalia Tsukanova, 1996. "How Does Privatization Work? Evidence from the Russian Shops," Journal of Political Economy, University of Chicago Press, vol. 104(4), pages 764-790, August.
    10. Ang, James & Knill, April & Mauck, Nathan, 2017. "Cross-border opportunity sets: An international empirical study based on ownership types," Global Finance Journal, Elsevier, vol. 33(C), pages 1-26.
    11. James A. Schmitz, 1996. "The role played by public enterprises: how much does it differ across countries?," Quarterly Review, Federal Reserve Bank of Minneapolis, vol. 20(Spr), pages 2-15.
    12. Christopher M. Anderson & Daniel S. Holland, 2006. "Auctions for Initial Sale of Annual Catch Entitlement," Land Economics, University of Wisconsin Press, vol. 82(3), pages 333-352.
    13. O'Toole, Conor M. & Morgenroth, Edgar L.W. & Ha, Thuy T., 2016. "Investment efficiency, state-owned enterprises and privatisation: Evidence from Viet Nam in Transition," Journal of Corporate Finance, Elsevier, vol. 37(C), pages 93-108.
    14. Claessens,Constantijn A. & Djankov, Simeon, 1998. "Politicians and firms in seven central and eastern European countries," Policy Research Working Paper Series 1954, The World Bank.
    15. Nandini Gupta & John C. Ham & Jan Svejnar, 2000. "Priorities and Sequencing in Privatization: Theory and Evidence from the Czech Republic," William Davidson Institute Working Papers Series 323, William Davidson Institute at the University of Michigan.
    16. Hikmet Gunay & Xin Meng, 2007. "Predatory Bidding in Sequential Auctions," Economics Bulletin, AccessEcon, vol. 4(12), pages 1-5.
    17. Luis Andres & José Luis Guasch & Sebastián Lopez Azumendi, 2009. "Regulatory Governance and Sector Performance: Methodology and Evaluation for Electricity Distribution in Latin America," Chapters, in: Claude Ménard & Michel Ghertman (ed.), Regulation, Deregulation, Reregulation, chapter 6, Edward Elgar Publishing.
    18. Doan, Anh-Tuan & Lin, Kun-Li & Doong, Shuh-Chyi, 2020. "State-controlled banks and income smoothing. Do politics matter?," The North American Journal of Economics and Finance, Elsevier, vol. 51(C).
    19. David H. Reiley, 2006. "Field experiments on the effects of reserve prices in auctions: more Magic on the Internet," RAND Journal of Economics, RAND Corporation, vol. 37(1), pages 195-211, March.
    20. Ghulam, Yaseen, 2021. "Institutions and firms’ technological changes and productivity growth," Technological Forecasting and Social Change, Elsevier, vol. 171(C).

    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:cpp:issued:v:26:y:2000:i:1:p:35-49. 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: Iver Chong The email address of this maintainer does not seem to be valid anymore. Please ask Iver Chong to update the entry or send us the correct address (email available below). General contact details of provider: https://www.utpjournals.press/loi/cpp .

    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.