California oil severance tax: who gains. who pays

Book · Mon Nov 01 04:00:00 EST 1982

OSTI ID:6480836

Camm, F; Myers, C W

Impacts of imposing a new oil severance tax in the range of 2 to 7% in California are analyzed. To perform the analytic tasks necessary to understand the complex effects of severance taxes, we used an extensive data base on the characteristics of individual California oil properties, constructed formal tax-incidence and production-planning models, and conducted a statistical analysis of oil investment decisions during 1981. The methods and models developed for this study permit us to estimate the aggregate effects of new severance taxes in California, and they should also apply both to severance taxes in other states and to other natural resources besides oil. Results of the study reveal that: severance taxes can provide states with new net revenues; the financial burden of those revenues falls mostly out of state, principally on the federal government; oil producers and refiners also bear a sizable portion of the tax, and this portion grows as the windfall profit tac phases out and production cuts increase; and negative effects on production, at least in California, would be small in the short-term, but would grow over time. (DMC)

• OSTI ID: 6480836
• Report Number(s): RAND/R-2975-CSA/RC; ON: DE83900973
• 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
294002 -- Energy Planning & Policy-- Petroleum
CALIFORNIA
ECONOMIC IMPACT
ENERGY SOURCES
FEDERAL REGION IX
FOSSIL FUELS
FUELS
INDUSTRY
NATIONAL GOVERNMENT
NORTH AMERICA
PETROLEUM
PETROLEUM INDUSTRY
PRICES
PRODUCTION
SEVERANCE TAX
STATE GOVERNMENT
TAXES
USA
WINDFALL PROFITS TAX