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Specific or ad valorem tax for an exhaustible resource?

Author

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  • Hung, N.M.
  • Quyen, N.V.

Abstract

Not withstanding the equivalence in static framework between an ad-valorem and a specific sale tax, this paper shows in the dynamic Hotelling model for an exhaustible resource that the ad valorem tax is definitely welfare-superior to the specific tax.

Suggested Citation

  • Hung, N.M. & Quyen, N.V., 2009. "Specific or ad valorem tax for an exhaustible resource?," Economics Letters, Elsevier, vol. 102(2), pages 132-134, February.
    • Handle: RePEc:eee:ecolet:v:102:y:2009:i:2:p:132-134
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    References listed on IDEAS

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    1. Harold Hotelling, 1931. "The Economics of Exhaustible Resources," Journal of Political Economy, University of Chicago Press, vol. 39, pages 137-137.
    2. Bergstrom, Theodore C. & Cross, John G. & Porter, Richard C., 1981. "Efficiency-inducing taxation for a monopolistically supplied depletable resource," Journal of Public Economics, Elsevier, vol. 15(1), pages 23-32, February.
    3. Villamor Gamponia & Robert Mendelsohn, 1985. "The Taxation of Exhaustible Resources," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 100(1), pages 165-181.
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    Cited by:

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    2. Tang, Ling & Shi, Jiarui & Yu, Lean & Bao, Qin, 2017. "Economic and environmental influences of coal resource tax in China: A dynamic computable general equilibrium approach," Resources, Conservation & Recycling, Elsevier, vol. 117(PA), pages 34-44.
    3. Li, Yuan & Zhou, You & Yi, Bo-Wen & Wang, Ya, 2021. "Impacts of the coal resource tax on the electric power industry in China: A multi-regional comprehensive analysis," Resources Policy, Elsevier, vol. 70(C).
    4. Wang, Jie & Liao, Xianchun & Yu, Yue, 2022. "The examination of resource tax reform facilitating firms’ green innovation in resource-related industry in China," Resources Policy, Elsevier, vol. 79(C).
    5. Yanhui Yin & Bowen Yang, 2023. "Environmental Protection or Development? Multiple Policy Effects Evaluation of the Resource Tax Collection Reform for Iron Ore Enterprises in China," IJERPH, MDPI, vol. 20(5), pages 1-15, February.

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