IDEAS home Printed from https://ideas.repec.org/a/spr/minecn/v32y2019i1d10.1007_s13563-018-0145-z.html
   My bibliography  Save this article

Economic analysis of Zambia’s ad valorem copper mineral royalty reforms using an analytic hierarchy process framework

Author

Listed:
  • Webby Banda

    (University of Zambia)

Abstract

The Zambian Government has continuously been undertaking adjustment of the ad valorem copper mineral royalty. These reforms have been pursued with the main objective of instituting a robust mineral royalty instrument. In this paper, an economic analysis of Zambia’s ad valorem copper mineral royalty reforms was undertaken so as to determine that which is sturdiest in design. Four evaluation criteria were applied, namely, neutrality, government risk, investor risk and progressivity. Based on the results of these criteria, an analytic hierarchy process (AHP) framework was used to determine the most robust royalty reform. Mineral royalty with the highest AHP score denoted that which is sturdiest in design. Results show that the 2009 mineral royalty with an AHP score of 0.91 is the most robust as it offers the best trade-off among the employed criteria.

Suggested Citation

  • Webby Banda, 2019. "Economic analysis of Zambia’s ad valorem copper mineral royalty reforms using an analytic hierarchy process framework," Mineral Economics, Springer;Raw Materials Group (RMG);Luleå University of Technology, vol. 32(1), pages 1-18, April.
    • Handle: RePEc:spr:minecn:v:32:y:2019:i:1:d:10.1007_s13563-018-0145-z
    DOI: 10.1007/s13563-018-0145-z
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s13563-018-0145-z
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s13563-018-0145-z?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
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Brenton Goldsworthy & Ms. Daria V Zakharova, 2010. "Evaluation of the Oil Fiscal Regime in Russia and Proposals for Reform," IMF Working Papers 2010/033, International Monetary Fund.
    2. Olle Ostensson & Bob Parsons & Samantha Dodd, 2014. "Comparative Study of the Mining Tax Regime for Mineral Exploitation in Kazakhstan," World Bank Publications - Reports 21587, The World Bank Group.
    3. Silvana Tordo, 2007. "Fiscal Systems for Hydrocarbons : Design Issues," World Bank Publications - Books, The World Bank Group, number 6746, December.
    4. Govori, Florije, 2015. "A Different Approach of Tax Progressivity Measurement," MPRA Paper 62846, University Library of Munich, Germany.
    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. Banda, Webby & Chanda, Emmanuel K., 2021. "A proposed cooperatives strategy for artisanal and small-scale gold mining sector in Zambia," Resources Policy, Elsevier, vol. 70(C).
    2. Banda, Webby, 2021. "A real options based framework for assessing the international attractiveness of mining taxation regimes," Resources Policy, Elsevier, vol. 74(C).

    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. Banda, Webby & Kabwe, Eugie, 2019. "An integrated multiple criteria decision making framework for application in the evaluation of mineral taxation regimes," Resources Policy, Elsevier, vol. 62(C), pages 635-650.
    2. Fjaertoft, Daniel & Lunden, Lars Petter, 2015. "Russian petroleum tax policy – Continuous maneuvering in rocky waters," Energy Policy, Elsevier, vol. 87(C), pages 553-561.
    3. Olle Östensson & Anton Löf, 2017. "Downstream activities: The possibilities and the realities," WIDER Working Paper Series wp-2017-113, World Institute for Development Economic Research (UNU-WIDER).
    4. Alexeev, Michael & Zakharov, Nikita, 2022. "Who profits from windfalls in oil tax revenue? Inequality, protests, and the role of corruption," Journal of Economic Behavior & Organization, Elsevier, vol. 197(C), pages 472-492.
    5. Guy Dabi Gab-Leyba & Bertrand Laporte, 2015. "Oil Contracts, Progressive Taxation and Government Take in the Context of Uncertainty in Crude Oil Prices: The Case of Chad," Working Papers halshs-01217417, HAL.
    6. Celine de Quatrebarbes & Bertrand Laporte, 2015. "What do we know about the mineral resource rent sharing in Africa?," CERDI Working papers halshs-01146279, HAL.
    7. Alexeev, Michael & Zakharov, Nikita, 2022. "Who profits from windfalls in oil tax revenue? Inequality, protests, and the role of corruption," Journal of Economic Behavior & Organization, Elsevier, vol. 197(C), pages 472-492.
    8. repec:zbw:bofitp:2022_002 is not listed on IDEAS
    9. Smith, James L., 2014. "A parsimonious model of tax avoidance and distortions in petroleum exploration and development," Energy Economics, Elsevier, vol. 43(C), pages 140-157.
    10. Smith, James L., 2013. "Issues in extractive resource taxation: A review of research methods and models," Resources Policy, Elsevier, vol. 38(3), pages 320-331.
    11. repec:cmj:journl:y:2013:i:27:stoiana,becherescur is not listed on IDEAS
    12. Abdul Manaf, Nor Aziah & Mas'ud, Abdulsalam & Ishak, Zuaini & Saad, Natrah & Russell, Alex, 2016. "Towards establishing a scale for assessing the attractiveness of petroleum fiscal regimes – Evidence from Malaysia," Energy Policy, Elsevier, vol. 88(C), pages 253-261.
    13. Andrei STOIAN & Radu BECHERESCU, 2013. "Financial Crises Of The Last Two Decades And The Issues To Be Addressed," SEA - Practical Application of Science, Romanian Foundation for Business Intelligence, Editorial Department, issue 1, pages 200-211, June.
    14. Olleik, Majd & Auer, Hans & Nasr, Rawad, 2021. "A petroleum upstream production sharing contract with investments in renewable energy: The case of Lebanon," Energy Policy, Elsevier, vol. 154(C).
    15. Roohollah Kohan Hoosh Nejad & Davood Manzoor & Masoud Amani, 2018. "Economic Evaluation of Fiscal Regime of Buy-Back Contracts in Comparison with Production Sharing Contracts (Case Study: Azadegan Oil Field)," Iranian Economic Review (IER), Faculty of Economics,University of Tehran.Tehran,Iran, vol. 22(2), pages 579-598, Spring.
    16. Bobylev Yuriy & Turuntseva Marina, 2010. "Taxation of the mineral sector," Research Paper Series, Gaidar Institute for Economic Policy, issue 140P.
    17. Florije Govori, 2019. "Personal Income Tax Progression in Kosovo," Academic Journal of Interdisciplinary Studies, Richtmann Publishing Ltd, vol. 8, November.
    18. Banda, Webby, 2021. "A real options based framework for assessing the international attractiveness of mining taxation regimes," Resources Policy, Elsevier, vol. 74(C).
    19. Dankwa Kankam & Ishmael Ackah, 2014. "The Optimal Petroleum Fiscal Regime for Ghana: An Analysis of Available Alternatives," International Journal of Energy Economics and Policy, Econjournals, vol. 4(3), pages 400-410.
    20. Berg, Magnus & Bøhren, Øyvind & Vassnes, Erik, 2018. "Modeling the response to exogenous shocks: The capital uplift rate in petroleum taxation," Energy Economics, Elsevier, vol. 69(C), pages 442-455.
    21. Magda WISNIEWSKA-KUZMA, 2020. "Measurement of personal income tax progressivity in the post-socialist countries of Europe compared to other OECD countries," Eastern Journal of European Studies, Centre for European Studies, Alexandru Ioan Cuza University, vol. 11, pages 113-131, December.
    22. Olle Östensson, 2017. "Local content, supply chains, and shared infrastructure," WIDER Working Paper Series wp-2017-96, World Institute for Development Economic Research (UNU-WIDER).

    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:spr:minecn:v:32:y:2019:i:1:d:10.1007_s13563-018-0145-z. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.