IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

Energy Tariffs, Production, and Income in a Small Open Economy

  • Henry Thompson

A tariff on imported energy in a small open economy alters production, redistributes income, and generates tariff revenue. The present paper includes tariff revenue in a general equilibrium economy producing two traded goods with imported energy and domestic capital and labor. An energy tariff reduces energy intensive output and domestic factor income but payment to one domestic factor may rise as might the other output. Tariff revenue, not included in the related theoretical literature, is shown to be concave in the tariff. A simulation illustrates these general equilibrium properties including the revenue maximizing tariff.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://cla.auburn.edu/econwp/Archives/2013/2013-11.pdf
Download Restriction: no

Paper provided by Department of Economics, Auburn University in its series Auburn Economics Working Paper Series with number auwp2013-11.

as
in new window

Length:
Date of creation: Aug 2013
Date of revision:
Handle: RePEc:abn:wpaper:auwp2013-11
Contact details of provider: Postal: 0326 Haley Center, Auburn University, AL 36849-5049
Phone: (334) 844-4910
Fax: (334) 844-4615
Web page: http://cla.auburn.edu/economics/
More information through EDIRC

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

as in new window
  1. Panagariya, Arvind, 1992. "Input tariffs, duty drawbacks, and tariff reforms," Journal of International Economics, Elsevier, vol. 32(1-2), pages 131-147, February.
  2. Proost, S. & Van Regemorter, D., 1992. "Economic effects of a carbon tax : With a general equilibrium illustration for Belgium," Energy Economics, Elsevier, vol. 14(2), pages 136-149, April.
  3. Berndt, Ernst R & Christensen, Laurits R, 1973. "The Internal Structure of Functional Relationships: Separability, Substitution and Aggregation," Review of Economic Studies, Wiley Blackwell, vol. 40(3), pages 403-10, July.
  4. Thompson, Henry, 2006. "The applied theory of energy substitution in production," Energy Economics, Elsevier, vol. 28(4), pages 410-425, July.
  5. Chang, Winston W, 1979. "Some Theorems of Trade and General Equilibrium with Many Goods and Factors," Econometrica, Econometric Society, vol. 47(3), pages 709-26, May.
  6. Lars E.O. Svensson, 1982. "Factor Trade and Goods Trade," NBER Working Papers 0999, National Bureau of Economic Research, Inc.
  7. Lloyd A. Metzler, 1949. "Tariffs, International Demand, and Domestic Prices," Journal of Political Economy, University of Chicago Press, vol. 57, pages 345.
  8. Griffin, James M & Gregory, Paul R, 1976. "An Intercountry Translog Model of Energy Substitution Responses," American Economic Review, American Economic Association, vol. 66(5), pages 845-57, December.
  9. Ruffin, Roy J., 1977. "A note on the Heckscher-Ohlin theorem," Journal of International Economics, Elsevier, vol. 7(4), pages 403-405, November.
  10. Ruffin, Roy J, 1969. "Tariffs, Intermediate Goods, and Domestic Protection," American Economic Review, American Economic Association, vol. 59(3), pages 261-69, June.
  11. Matthias Weitzel & Michael Hübler & Sonja Peterson, 2012. "Fair, Optimal or Detrimental? Environmental vs. Strategic Use of Border Carbon Adjustment," Kiel Working Papers 1792, Kiel Institute for the World Economy.
  12. Henry Thompson, 1985. "Complementarity in a Simple General Equilibrium Production Model," Canadian Journal of Economics, Canadian Economics Association, vol. 18(3), pages 616-21, August.
  13. Kline, David & Weyant, John P., 1982. "Reducing dependence on oil imports," Energy Economics, Elsevier, vol. 4(1), pages 51-64, January.
  14. Jones, Clifton T., 1990. "An oil import fee and drilling activity in the USA : A comment," Energy Economics, Elsevier, vol. 12(4), pages 302-304, October.
  15. Semboja, Haji Hatibu Haji, 1994. "The effects of energy taxes on the Kenyan economy : A CGE analysis," Energy Economics, Elsevier, vol. 16(3), pages 205-215, July.
  16. Dissou, Yazid & Eyland, Terry, 2011. "Carbon control policies, competitiveness, and border tax adjustments," Energy Economics, Elsevier, vol. 33(3), pages 556-564, May.
  17. Ferguson, D. G., 1978. "International capital mobility and comparative advantage : The two-country, two-factor case," Journal of International Economics, Elsevier, vol. 8(3), pages 373-396, August.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:abn:wpaper:auwp2013-11. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Hyeongwoo Kim)

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 references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.

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

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.