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Title: Competitive interstate taxation of western coal

Abstract

This paper analyzes the potential market power of western states in setting coal severance taxes. An attempt to determine the emphasis placed by the western states on the development of their coal resources is also made. Three market structures are analyzed. One involves a western regional cartel, setting taxes collectively. The other cases are noncooperative tax equilibria with Montana and Wyoming competing against each other. We study the effects on these equilibria of changes in each region's relative emphasis on development of coal resources vs tax revenue. The welfare impacts of these tax setting policies are also addressed. The analysis is based on an activity analysis of US coal markets. The results show that the taxes associated with the noncooperative competitive tax equilibria are close to present tax levels. Additionally, we conclude that western states currently are quite efficient extractors of economic rent from coal produced within their boundaries, in terms of welfare loss per dollar of tax revenue collected. 2 figures.

Authors:
;
Publication Date:
Research Org.:
Los Alamos National Lab., NM (USA)
OSTI Identifier:
6004741
Report Number(s):
LA-UR-83-2272; CONF-830698-1
ON: DE83015928
DOE Contract Number:
W-7405-ENG-36
Resource Type:
Conference
Resource Relation:
Conference: International Association of Energy Economists conference, Washington, DC, USA, 9 Jun 1983
Country of Publication:
United States
Language:
English
Subject:
01 COAL, LIGNITE, AND PEAT; 29 ENERGY PLANNING, POLICY AND ECONOMY; COAL; MARKET; TAXES; MONTANA; TAX LAWS; WYOMING; RESOURCE DEVELOPMENT; CARBONACEOUS MATERIALS; ENERGY SOURCES; FEDERAL REGION VIII; FOSSIL FUELS; FUELS; LAWS; MATERIALS; NORTH AMERICA; USA; 015000* - Coal, Lignite, & Peat- Economic, Industrial, & Business Aspects; 017000 - Coal, Lignite, & Peat- Legislation & Regulations; 294001 - Energy Planning & Policy- Coal

Citation Formats

Kolstad, C.D., and Wolak, F.A. Jr.. Competitive interstate taxation of western coal. United States: N. p., 1983. Web.
Kolstad, C.D., & Wolak, F.A. Jr.. Competitive interstate taxation of western coal. United States.
Kolstad, C.D., and Wolak, F.A. Jr.. 1983. "Competitive interstate taxation of western coal". United States. doi:. https://www.osti.gov/servlets/purl/6004741.
@article{osti_6004741,
title = {Competitive interstate taxation of western coal},
author = {Kolstad, C.D. and Wolak, F.A. Jr.},
abstractNote = {This paper analyzes the potential market power of western states in setting coal severance taxes. An attempt to determine the emphasis placed by the western states on the development of their coal resources is also made. Three market structures are analyzed. One involves a western regional cartel, setting taxes collectively. The other cases are noncooperative tax equilibria with Montana and Wyoming competing against each other. We study the effects on these equilibria of changes in each region's relative emphasis on development of coal resources vs tax revenue. The welfare impacts of these tax setting policies are also addressed. The analysis is based on an activity analysis of US coal markets. The results show that the taxes associated with the noncooperative competitive tax equilibria are close to present tax levels. Additionally, we conclude that western states currently are quite efficient extractors of economic rent from coal produced within their boundaries, in terms of welfare loss per dollar of tax revenue collected. 2 figures.},
doi = {},
journal = {},
number = ,
volume = ,
place = {United States},
year = 1983,
month = 1
}

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