Mineral taxation in Jamaica: an oligopoly confronts taxes on resource rents - and prevails

Journal Article · Wed Apr 01 00:00:00 EST 1987 · Am. J. Econ. Sociol.; (United States)

DOI:https://doi.org/10.1111/j.1536-7150.1987.tb01954.x· OSTI ID:7010134

Dore, M H.I.

The reallocative effects on bauxite production in Jamaica following the imposition of an ad valorem tax in 1974 are considered. The international aluminum industry, being both vertically and horizontally integrated, evolved a successful strategy of time-phasing bauxite production capacity worldwide. The non-neutral tax not only made Jamaican bauxite uncompetitive with the output of other producers but also eroded the cost differential between bauxite and alternative sources of aluminum ore. This study claims that the consequences of the tax have been disastrous, and it argues that the ad valorem tax on the recovered ore must be replaced by some form of a profits-based tax.

• Research Organization: Brock Univ., St. Catharines, Ontario (Canada)
• OSTI ID: 7010134
• Journal Information: Am. J. Econ. Sociol.; (United States), Vol. 46:2
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING
POLICY AND ECONOMY
JAMAICA
MINERAL RESOURCES
TAXES
ECONOMIC IMPACT
BAUXITE
ECONOMIC POLICY
PROFITS
ALUMINIUM ORES
DEVELOPING COUNTRIES
GOVERNMENT POLICIES
GREATER ANTILLES
ISLANDS
ORES
RESOURCES
WEST INDIES
290400* - Energy Planning & Policy- Energy Resources
290200 - Energy Planning & Policy- Economics & Sociology