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Title: Spatial taxation effects on regional coal economic activities

Journal Article · · Mater. Soc.; (United States)
OSTI ID:6737463

Taxation effects on resource production, consumption and prices are seldom evaluated especially in the field of spatial commodity modeling. The most commonly employed linear programming model has fixed-point estimated demands and capacity constraints; hence it makes taxation effects difficult to be modeled. The second type of resource allocation model, the interregional input-output models does not include a direct and explicit price mechanism. Therefore, it is not suitable for analyzing taxation effects. The third type or spatial commodity model has been econometric in nature. While such an approach has a good deal of flexibility in modeling political and non-economic variables, it treats taxation (or tariff) effects loosely using only dummy variables, and, in many cases, must sacrifice the consistency criterion important for spatial commodity modeling. This leaves model builders only one legitimate choice for analyzing taxation effects: the quadratic programming model which explicitly allows the interplay of regional demand and supply relations via a continuous spatial price constructed by the authors related to the regional demand for and supply of coal from Appalachian markets.

Research Organization:
West Virginia Univ., Morgantown
OSTI ID:
6737463
Journal Information:
Mater. Soc.; (United States), Vol. 6:1
Country of Publication:
United States
Language:
English