Slowing fossil fuel extraction a role for taxation of experts, capital gains and interest income Creina Day and Garth Day
By: Day, Creina
.
Contributor(s): Day, Garth.
Material type: 
ArticlePublisher: 2019Subject(s): PETROLEO | EXPLOTACION | EXPORTACION | PLUSVALIAS | RENDIMIENTOS DE CAPITAL | IMPUESTOS | MODELOS ECONOMETRICOSOnline resources: Click here to access online
In:
Fiscal Studies v. 40, n. 1, March 2019, p. 91-111Summary: This paper develops amodel of a growing open economy rich in non-renewable resources, the extraction of which negatively impacts domestic productivity and whose sector competes with final production for capital. We analyse how tax rates on capital gains and interest income and the time trend of an export
revenue tax rate could slow the extraction of resources for export. We find that taxing capital gains and interest income at the same rate and setting an export revenue tax rate to decline at the marginal social cost of extraction would defer extraction. An export revenue tax rate need not fall over time to curb depletion if capital gains are taxed at a lower rate than interest income, which is second best to taxing asset returns at the same rate when the resources sector competes for capital.
| Item type | Current location | Home library | Call number | URL | Status | Date due | Barcode |
|---|---|---|---|---|---|---|---|
| Artículos | IEF | IEF | OP 1472/2019/1-5 (Browse shelf) | https://onlinelibrary.wiley.com/doi/epdf/10.1111/1475-5890.12167 | Available | OP 1472/2019/1-5 |
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| OP 1472/2019/1-2 Public support for older disabled people | OP 1472/2019/1-3 The effect of the recent inheritance tax reform on bequest behaviour in Japan | OP 1472/2019/1-4 Fiscal rules and Government financing costs | OP 1472/2019/1-5 Slowing fossil fuel extraction | OP 1472/2019/2 Fiscal Studies | OP 1472/2019/2-1 The stability of tax elasticities over the business cycle in European countries | OP 1472/2019/2-2 Tax deferral and mutual fund inflows |
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This paper develops amodel of a growing open economy rich in non-renewable resources, the extraction of which negatively impacts domestic productivity and whose sector competes with final production for capital. We analyse how tax rates on capital gains and interest income and the time trend of an export
revenue tax rate could slow the extraction of resources for export. We find that taxing capital gains and interest income at the same rate and setting an export revenue tax rate to decline at the marginal social cost of extraction would defer extraction. An export revenue tax rate need not fall over time to curb depletion if capital gains are taxed at a lower rate than interest income, which is second best to taxing asset returns at the same rate when the resources sector competes for capital.
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