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Some Effects of Reducing Excess in Infrastructure Charges on the Export Coal Industry

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Author Info
Freebairn, John W
Abstract

Excess rail freight and port charges on the Australian export coal industry amount to over 10 percent of export prices and represent a form of ad valorem tax. Efficiency and distributional effects of removing the excess charges are assessed using a quantitative commodity model and a qualitative general equilibrium assessment. Removal of the excess charge would increase production by 29 percent by the year 2000, slightly reduce export prices, and generate national efficiency gains of over $150 million a year. The mining industry and the federal government gain and the state governments lose. Copyright 1989 by The Economic Society of Australia.

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Publisher Info
Article provided by The Economic Society of Australia in its journal The Economic Record.

Volume (Year): 65 (1989)
Issue (Month): 191 (December)
Pages: 345-56
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Handle: RePEc:bla:ecorec:v:65:y:1989:i:191:p:345-56

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  1. Raghuram G & Verma Sanjay & Dixit K L & Kapshe Sanjeevan, 2004. "Strategies for Improving Indian Railways’ Market Share of Port Based Coal Traffic: A Diagnostic Study," IIMA Working Papers 2004-08-04, Indian Institute of Management Ahmedabad, Research and Publication Department. [Downloadable!]
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