Taxation of nonreplenishable natural resources revisited

Journal Article · Thu Feb 28 23:00:00 EST 1985 · J. Environ. Econ. Manage.; (United States)

DOI:https://doi.org/10.1016/0095-0696(85)90013-0· OSTI ID:5868842

Heaps, T

The theory of nonreplenishable resource extraction has been extended to allow for extraction costs which increase as deposits are increasingly depleted. In these cases, profit maximization may result in the cessation of extraction before reserves are totally exhausted. The effect of various taxation policies on optimal extraction patterns in these models are derived. With a few exceptions, the results are that the imposition of a tax will cause operators to extract at faster rates over shorter periods of time and to reduce the total amount of ore extracted. The analysis allows for an output price which increases over time. 11 references, 9 figures, 1 table.

• Research Organization: Simon Fraser Univ., Burnaby, British Columbia
• OSTI ID: 5868842
• Journal Information: J. Environ. Econ. Manage.; (United States), Journal Name: J. Environ. Econ. Manage.; (United States) Vol. 12:1; ISSN JEEMD
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
290200 -- Energy Planning & Policy-- Economics & Sociology
290400* -- Energy Planning & Policy-- Energy Resources
ECONOMIC POLICY
ECONOMICS
FINANCIAL INCENTIVES
GOVERNMENT POLICIES
PROFITS
RESOURCE CONSERVATION
RESOURCE DEPLETION
RESOURCE DEVELOPMENT
TAXES