Efficiency versus equity in petroleum taxation

Journal Article · Tue Jan 01 04:00:00 EST 1985 · Energy J.; (United States)

DOI:https://doi.org/10.5547/ISSN0195-6574-EJ-Vol6-NoSI-14· OSTI ID:6017064

Jorgenson, D W; Slesnick, D T

This paper presents a new approach to the economic analysis of energy policy. The objective is to provide an ordering of alternative energy policies, in which the most desirable energy policy is the one yielding the highest level of social welfare. This principle can be used to evaluate a specific policy change or select the best policy from a set of alternatives. The authors' measure of social welfare is defined on the distribution of individual welfare, which is specified in terms of households as consuming units. They introduce a money metric for social welfare based on total expenditure. Using this metric, energy policies can be compared in terms of the amount of money required to attain the level of welfare associated with each policy. The money measure of social welfare consists of money measures of efficiency and equity. To illustrate the measurement of social welfare, the authors compare alternative policies for taxation of petroleum production in the US. 19 references, 4 tables.

• Research Organization: Harvard Univ., Cambridge, MA
• OSTI ID: 6017064
• Journal Information: Energy J.; (United States), Journal Name: Energy J.; (United States) Vol. 6; ISSN ENJOD
• Country of Publication: United States
• Language: English

Related Subjects

02 PETROLEUM
020700* -- Petroleum-- Economics
Industrial
& Business Aspects
29 ENERGY PLANNING, POLICY, AND ECONOMY
290200 -- Energy Planning & Policy-- Economics & Sociology
293000 -- Energy Planning & Policy-- Policy
Legislation
& Regulation
294002 -- Energy Planning & Policy-- Petroleum
CONSUMER PROTECTION
ENERGY POLICY
ENERGY SOURCES
FOSSIL FUELS
FUELS
GOVERNMENT POLICIES
INSTITUTIONAL FACTORS
NORTH AMERICA
PETROLEUM
SOCIO-ECONOMIC FACTORS
TAXES
USA