Effects of a broad-based energy tax on the United States economy

Journal Article · · Energy Sources; (United States)

DOI:https://doi.org/10.1080/00908319408909067· OSTI ID:5099569

Uri, N D ^[1]; Boyd, R ^[2]

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1. Dept. of Agriculture, Washington, DC (United States). Commodity Economics Div.
2. Ohio Univ., Athens, OH (United States). Dept. of Economics

This paper investigates the effects of a broad-based energy tax on the economy in general and the agricultural sectors in particular. The effects of imposing a tax on natural gas, coal, and nuclear power of 25.7 cents per million Btu's and a tax on refined petroleum products of 59.9 cents per million Btu's on prices and quantities are examined. A Btu tax on energy imposed at the point of production will result in lower output by the producing sectors ($122.4 billion), a decrease in the consumption of goods and services ($64.6 billion), and a reduction in welfare ($66.6 billion). The government would realize an increase in revenue of about $50.5 billion. In the case of the Btu tax being imposed at the point of consumption, there will be lower output by the producing sectors ($83.7 billion), a reduction in the consumption of goods and services ($48.3 billion), and a reduction in welfare ($49.5 billion). The government would realize an increase in revenue of $41.5 billion. The agricultural sectors would be measurably affected. For example, if the Btu tax is imposed at the point of production, output in the program crops sector will fall ($637 million), output in the livestock sector will decline ($257 million), output in the all other agriculture commodities sector will be reduced ($54 million), and output in the forestry sector will rise ($144 million). If the Btu tax is imposed at the point of consumption, output in the program crops sector will fall ($720 million), output in the livestock sector will decline ($453 million), output in the all other agriculture commodities sector will be reduced ($371 million), and output in the forestry sector will rise ($25 million).

• OSTI ID: 5099569
• Journal Information: Energy Sources; (United States), Journal Name: Energy Sources; (United States) Vol. 16:1; ISSN 0090-8312; ISSN EGYSAO
• Country of Publication: United States
• Language: English

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AGRICULTURE
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CARBONACEOUS MATERIALS
COAL
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ECONOMIC IMPACT
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PETROLEUM PRODUCTS
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