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The Impossibility of a Neutral Resource Rent Tax

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  • Smith, B.

Abstract

The proposition that the Resource Rent Tax can have a neutral effect on the level of mining investment has re-surface in recent literature. This paper shows that the proposition is essentially false.

Suggested Citation

  • Smith, B., 1999. "The Impossibility of a Neutral Resource Rent Tax," ANU Working Papers in Economics and Econometrics 1999-380, Australian National University, College of Business and Economics, School of Economics.
    • Handle: RePEc:acb:cbeeco:1999-380
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    File URL: https://www.cbe.anu.edu.au/researchpapers/econ/wp380.pdf
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    References listed on IDEAS

    as
    1. Emerson, Craig & Garnaut, Ross, 1984. "Mineral Leasing Policy: Competitive Bidding and the Resource Rent Tax Given Various Responses to Risk," The Economic Record, The Economic Society of Australia, vol. 60(169), pages 133-142, June.
    2. Swan, Peter L, 1976. "Income Taxes, Profit Taxes and Neutrality of Optimizing Decisions," The Economic Record, The Economic Society of Australia, vol. 52(138), pages 166-181, June.
    3. Garnaut, Ross & Clunies Ross, Anthony, 1979. "The Neutrality of the Resource Rent Tax," The Economic Record, The Economic Society of Australia, vol. 55(150), pages 193-201, September.
    4. Fraser, Rob & Kingwell, Ross, 1997. "Can expected tax revenue be increased by an investment-preserving switch from ad valorem royalties to a resource rent tax?," Resources Policy, Elsevier, vol. 23(3), pages 103-108, September.
    5. Peter L. Swan, 1976. "Income Taxes, Profit Taxes and Neutrality of Optimizing Decisions," The Economic Record, The Economic Society of Australia, vol. 52(2), pages 166-181, June.
    6. Rob Fraser, 1993. "On the Neutrality of the Resource Rent Tax," The Economic Record, The Economic Society of Australia, vol. 69(1), pages 56-60, March.
    7. Craig Emerson & Ross Garnaut, 1984. "Mineral Leasing Policy: Competitive Bidding and the Resource Rent Tax Given Various Responses to Risk," The Economic Record, The Economic Society of Australia, vol. 60(2), pages 133-142, June.
    8. Fraser, Rob, 1993. "On the Neutrality of the Resource Rent Tax," The Economic Record, The Economic Society of Australia, vol. 69(204), pages 56-60, March.
    9. CRAIG EMERSON and P. J. LLOYD, 1983. "Improving Mineral Taxation Policy in Australia," The Economic Record, The Economic Society of Australia, vol. 59(3), pages 232-244, September.
    10. Ross Garnaut & Anthony Clunies Ross, 1979. "The Neutrality of the Resource Rent Tax," The Economic Record, The Economic Society of Australia, vol. 55(3), pages 193-201, September.
    11. Emerson, Craig & Lloyd, P J, 1983. "Improving Mineral Taxation Policy in Australia," The Economic Record, The Economic Society of Australia, vol. 59(166), pages 232-244, September.
    12. Garnaut, Ross & Clunies Ross, Anthony, 1975. "Uncertainty, Risk Aversion and the Taxing of Natural Resource Projects," Economic Journal, Royal Economic Society, vol. 85(338), pages 272-287, June.
    Full references (including those not matched with items on IDEAS)

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    1. More on the RSPT
      by David Stern in Stochastic Trend on 2010-05-21 05:37:00

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    Cited by:

    1. Diderik Lund, 2009. "Rent Taxation for Nonrenewable Resources," Annual Review of Resource Economics, Annual Reviews, vol. 1(1), pages 287-307, September.
    2. Bobylev, Yuri & Rasenko, Olesya, 2017. "Comparative Analysis of Tax Regimes in the Oil Sector," Working Papers 041723, Russian Presidential Academy of National Economy and Public Administration.
    3. Abdo, Hafez, 2010. "The taxation of UK oil and gas production: Why the windfalls got away," Energy Policy, Elsevier, vol. 38(10), pages 5625-5635, October.

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    More about this item

    Keywords

    MINING ; TAXES ; INVESTMENTS;
    All these keywords.

    JEL classification:

    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
    • Q38 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Government Policy (includes OPEC Policy)

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