IDEAS home Printed from https://ideas.repec.org/a/bla/ecorec/v61y1985i1p445-449.html
   My bibliography  Save this article

Mineral Exploration and the Neutrality of Rent Royalties

Author

Listed:
  • H. F. CAMPBELL
  • R. K. LINDNER

Abstract

Bayesian techniques are used to analyze the effect on mineral project selection of the imposition of an ideal form of resource rent tax in which all costs, including exploration costs, are fully deducted from taxable income. It is demonstrated that higher rates of resource rent tax generally will alter the a priori probability of a deposit being mined due to a direct risk‐sharing effect as well as indirectly by changing the amount of exploration undertaken before the firm decides whether to mine or not.

Suggested Citation

  • H. F. Campbell & R. K. Lindner, 1985. "Mineral Exploration and the Neutrality of Rent Royalties," The Economic Record, The Economic Society of Australia, vol. 61(1), pages 445-449, March.
  • Handle: RePEc:bla:ecorec:v:61:y:1985:i:1:p:445-449
    DOI: 10.1111/j.1475-4932.1985.tb01996.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1475-4932.1985.tb01996.x
    Download Restriction: no

    File URL: https://libkey.io/10.1111/j.1475-4932.1985.tb01996.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Garnaut, Ross & Clunies Ross, Anthony, 1975. "Uncertainty, Risk Aversion and the Taxing of Natural Resource Projects," Economic Journal, Royal Economic Society, vol. 85(338), pages 272-287, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. K. G. Williams & R. W. Fraser, 1985. "State Taxation of the Iron Ore Industry in Western Australia," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 18(1), pages 30-36, March.
    2. Fraser, Rob, 1998. "An analysis of the relationship between uncertainty-reducing exploration and resource taxation," Resources Policy, Elsevier, vol. 24(4), pages 199-205, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Banfi, Silvia & Filippini, Massimo, 2010. "Resource rent taxation and benchmarking--A new perspective for the Swiss hydropower sector," Energy Policy, Elsevier, vol. 38(5), pages 2302-2308, May.
    2. Robin Boadway & Motohiro Sato & Jean-Francois Tremblay, 2015. "Cash-flow business taxation revisited: bankruptcy, risk aversion and asymmetric information," Working Papers 1531, Oxford University Centre for Business Taxation.
    3. Müller, Wolfgang, 1988. "Entwicklungstendenzen bei transnationalen Investitionsverträgen im Energie-Rohstoff-Sektor," Discussion Papers, Series II 53, University of Konstanz, Collaborative Research Centre (SFB) 178 "Internationalization of the Economy".
    4. -, 2022. "Fiscal Panorama of Latin America and the Caribbean 2022: Fiscal policy challenges for sustainable and inclusive development," Libros y Documentos Institucionales, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), number 48015 edited by Eclac.
    5. Alexander G. Kemp, 1989. "Petroleum exploitation and contract terms in developing countries after the oil price collapse," Natural Resources Forum, Blackwell Publishing, vol. 13(2), pages 116-126, May.
    6. Lund, Diderik, 2009. "Marginal versus Average Beta of Equity under Corporate Taxation," Memorandum 12/2009, Oslo University, Department of Economics.
    7. Celine de Quatrebarbes & Bertrand Laporte, 2015. "What do we know about the mineral resource rent sharing in Africa?," CERDI Working papers halshs-01146279, HAL.
    8. Duncan, Roderick, 2006. "Price or politics? An investigation of the causes of expropriation," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 50(1), pages 1-17, March.
    9. Kym Anderson, 2020. "Trade Protectionism In Australia: Its Growth And Dismantling," Journal of Economic Surveys, Wiley Blackwell, vol. 34(5), pages 1044-1067, December.
    10. Amos James Ibrahim-Shwilima & Hideki Konishi, 2014. "The Impact of Tax Concessions on Extraction of Non-renewable Resources:An Application to Gold Mining in Tanzania," Working Papers 1403, Waseda University, Faculty of Political Science and Economics.
    11. Osmundsen, Petter & Emhjellen, Magne & Johnsen, Thore & Kemp, Alexander & Riis, Christian, 2014. "Petroleum taxation and investment behaviour," UiS Working Papers in Economics and Finance 2014/17, University of Stavanger.
    12. Robin Boadway & Michael Keen, 2014. "Rent Taxes and Royalties in Designing Fiscal Regimes for Non-Renewable Resources," CESifo Working Paper Series 4568, CESifo.
    13. Blake, Andon J. & Roberts, Mark C., 2006. "Comparing petroleum fiscal regimes under oil price uncertainty," Resources Policy, Elsevier, vol. 31(2), pages 95-105, June.
    14. Banfi, Silvia & Filippini, Massimo & Mueller, Adrian, 2005. "An estimation of the Swiss hydropower rent," Energy Policy, Elsevier, vol. 33(7), pages 927-937, May.
    15. Fraser, Rob W., 1998. "Lease allocation systems, risk aversion and the resource rent tax," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 42(2), pages 1-16.
    16. Plourde, André, 2010. "On properties of royalty and tax regimes in Alberta's oil sands," Energy Policy, Elsevier, vol. 38(8), pages 4652-4662, August.
    17. K. G. Williams & R. W. Fraser, 1985. "State Taxation of the Iron Ore Industry in Western Australia," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 18(1), pages 30-36, March.
    18. Paolo M. Panteghini, 2005. "Asymmetric Taxation under Incremental and Sequential Investment," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 7(5), pages 761-779, December.
    19. Osmundsen, Petter, 2009. "Time consistency in Petroleum Taxation - The case of Norway," UiS Working Papers in Economics and Finance 2009/18, University of Stavanger.
    20. Craig Emerson & Ross Garnaut, 1984. "Mineral Leasing Policy: Competitive Bidding and the Resource Rent Tax Given Various Responses to Risk," The Economic Record, The Economic Society of Australia, vol. 60(2), pages 133-142, June.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:ecorec:v:61:y:1985:i:1:p:445-449. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/esausea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.