Energy Tariffs, Production, and Income in a Small Open Economy
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.
|Date of creation:||Aug 2013|
|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.:
- Ruffin, Roy J, 1969. "Tariffs, Intermediate Goods, and Domestic Protection," American Economic Review, American Economic Association, vol. 59(3), pages 261-269, June.
- Lloyd A. Metzler, 1949. "Tariffs, International Demand, and Domestic Prices," Journal of Political Economy, University of Chicago Press, vol. 57, pages 345-345.
- Henry Thompson, 1985. "Complementarity in a Simple General Equilibrium Production Model," Canadian Journal of Economics, Canadian Economics Association, vol. 18(3), pages 616-621, August.
- Ruffin, Roy J., 1977. "A note on the Heckscher-Ohlin theorem," Journal of International Economics, Elsevier, vol. 7(4), pages 403-405, November.
- Weitzel, Matthias & Hübler, Michael & Peterson, Sonja, 2012.
"Fair, optimal or detrimental? Environmental vs. strategic use of border carbon adjustment,"
Elsevier, vol. 34(S2), pages 198-207.
- Weitzel, Matthias & Hübler, Michael & Peterson, Sonja, 2012. "Fair, optimal or detrimental? Environmental vs. strategic use of border carbon adjustment," Kiel Working Papers 1792, Kiel Institute for the World Economy (IfW).
- Dissou, Yazid & Eyland, Terry, 2011. "Carbon control policies, competitiveness, and border tax adjustments," Energy Economics, Elsevier, vol. 33(3), pages 556-564, May.
- 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.
- Svensson, Lars E.O., 1984. "Factor trade and goods trade," Journal of International Economics, Elsevier, vol. 16(3-4), pages 365-378, May.
- Lars E.O. Svensson, 1982. "Factor Trade and Goods Trade," NBER Working Papers 0999, National Bureau of Economic Research, Inc.
- Ernst R. Berndt & Laurits R. Christensen, 1973. "The Internal Structure of Functional Relationships: Separability, Substitution, and Aggregation," Review of Economic Studies, Oxford University Press, vol. 40(3), pages 403-410.
- Kline, David & Weyant, John P., 1982. "Reducing dependence on oil imports," Energy Economics, Elsevier, vol. 4(1), pages 51-64, January.
- Henry Thompson, 2000. "Terms of Trade," World Scientific Book Chapters,in: International Economics Global Markets and International Competition, chapter 5, pages 140-179 World Scientific Publishing Co. Pte. Ltd..
- 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 845-857, December.
- Thompson, Henry, 2006. "The applied theory of energy substitution in production," Energy Economics, Elsevier, vol. 28(4), pages 410-425, July.
- Chang, Winston W, 1979. "Some Theorems of Trade and General Equilibrium with Many Goods and Factors," Econometrica, Econometric Society, vol. 47(3), pages 709-726, May.
- 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.
- Panagariya, Arvind, 1992. "Input tariffs, duty drawbacks, and tariff reforms," Journal of International Economics, Elsevier, vol. 32(1-2), pages 131-147, February.
- 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.
- 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. Full references (including those not matched with 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.