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Joint Natural Resources and Government Policy: Helium and Natural Gas

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  • A. M. Hughey

    (Brooklyn College, CUNY)

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    Abstract

    A model of jointly extracted natural resources is developed to analyze the effects of taxation policies. Under the assumptions of perfectly competitive resource owners and perfect foresight, the intertemporal equilibrium is described and contrasted with the single resource case. The effects of several subsidies on the equilibrium prices, and the extraction and consumption paths of the two resources, are analyzed and applied to the case of helium and natural gas. The jointness of the resources leads to results different from those predicted by the single resource model.

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    File URL: http://college.holycross.edu/RePEc/eej/Archive/Volume17/V17N1P80_88.pdf
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    Bibliographic Info

    Article provided by Eastern Economic Association in its journal Eastern Economic Journal.

    Volume (Year): 17 (1991)
    Issue (Month): 1 (Jan-Mar)
    Pages: 80-88

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    Handle: RePEc:eej:eeconj:v:17:y:1991:i:1:p:80-88

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    Related research

    Keywords: Gas; Natural Gas; Natural Resource; Resources;

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    1. Solow, Robert M, 1974. "The Economics of Resources or the Resources of Economics," American Economic Review, American Economic Association, American Economic Association, vol. 64(2), pages 1-14, May.
    2. Dennis Epple & Lester Lave, 1980. "Helium: Investments in the Future," Bell Journal of Economics, The RAND Corporation, The RAND Corporation, vol. 11(2), pages 617-630, Autumn.
    3. Partha Dasgupta & Geoffrey Heal & Joseph E. Stiflitx, 1980. "The Taxation of Exhaustible Resources," NBER Working Papers 0436, National Bureau of Economic Research, Inc.
    4. Liu, Ben-chieh, 1983. "Helium conservation and supply and demand projections in the USA," Energy Economics, Elsevier, Elsevier, vol. 5(1), pages 58-64, January.
    5. Pindyck, Robert S., 1982. "Jointly produced exhaustible resources," Journal of Environmental Economics and Management, Elsevier, vol. 9(4), pages 291-303, December.
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