Optimal Oil Taxation in a Small Open Economy
The international oil market has been very volatile over the past three decades. In industrialized economies, especially in Europe, taxes represent a large fraction of oil prices and governments do not seem to react to oil price shocks by using oil taxes strategically. The aim of this paper is to analyze optimal oil taxation in a dynamic stochastic general equilibrium model of a small open economy that imports oil. We obtain that in general it is not optimal to distort the oil price paid by firms with taxes. Extending the model in several ways this result could be reversed depending on environmental considerations and available fiscal instruments.
(This abstract was borrowed from another version of this item.)
|Date of creation:|
|Date of revision:|
|Contact details of provider:|| Web page: http://www.fedea.net|
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.:
- Lawrence H. Goulder, 1994. "Energy Taxes: Traditional Efficiency Effects and Environmental Implications," NBER Chapters, in: Tax Policy and the Economy, Volume 8, pages 105-158 National Bureau of Economic Research, Inc.
- V. V. Chari & Patrick J. Kehoe, 1998.
"Optimal fiscal and monetary policy,"
251, Federal Reserve Bank of Minneapolis.
- Julio I. Rotemberg & Michael Woodford, 1994.
"Energy Taxes and Aggregate Economic Activity,"
in: Tax Policy and the Economy, Volume 8, pages 159-195
National Bureau of Economic Research, Inc.
- Finn, Mary G., 1995. "Variance properties of Solow's productivity residual and their cyclical implications," Journal of Economic Dynamics and Control, Elsevier, vol. 19(5-7), pages 1249-1281.
- Andrew Atkeson & Patrick J. Kehoe, 1994.
"Models of Energy Use: Putty-Putty versus Putty-Clay,"
NBER Working Papers
4833, National Bureau of Economic Research, Inc.
- Patrick J. Kehoe & Andrew Atkeson, 1999. "Models of Energy Use: Putty-Putty versus Putty-Clay," American Economic Review, American Economic Association, vol. 89(4), pages 1028-1043, September.
- Baumol,William J. & Oates,Wallace E., 1988.
"The Theory of Environmental Policy,"
Cambridge University Press, number 9780521311120.
- Diamond, P. A. & McFadden, D. L., 1974. "Some uses of the expenditure function in public finance," Journal of Public Economics, Elsevier, vol. 3(1), pages 3-21, February.
- Diamond, Peter A & Mirrlees, James A, 1971. "Optimal Taxation and Public Production: I--Production Efficiency," American Economic Review, American Economic Association, vol. 61(1), pages 8-27, March.
- Julio J. Rotemberg & Michael Woodford, 1996.
"Imperfect Competition and the Effects of Energy Price Increases on Economic Activity,"
NBER Working Papers
5634, National Bureau of Economic Research, Inc.
- Rotemberg, Julio J & Woodford, Michael, 1996. "Imperfect Competition and the Effects of Energy Price Increases on Economic Activity," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 28(4), pages 550-77, November.
- Atkinson, A. B. & Stiglitz, J. E., 1972. "The structure of indirect taxation and economic efficiency," Journal of Public Economics, Elsevier, vol. 1(1), pages 97-119, April.
- In-Moo Kim & Prakash Loungani, 1991.
"The role of energy in real business cycle models,"
Working Paper Series, Macroeconomic Issues
91-6, Federal Reserve Bank of Chicago.
- Bizer, David S & Stuart, Charles, 1987. "The Public Finance of a Protective Tariff: The Case of an Oil Import Fee," American Economic Review, American Economic Association, vol. 77(5), pages 1019-22, December.
- Carlos de Miguel & Baltasar Manzano & Jose M. Martin-Moreno, 2003. "Oil Price Shocks and Aggregate Fluctuations," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2), pages 47-61.
- Mary G. Finn, 1991. "Energy price shocks, capacity utilization and business cycle fluctuations," Discussion Paper / Institute for Empirical Macroeconomics 50, Federal Reserve Bank of Minneapolis.
When requesting a correction, please mention this item's handle: RePEc:fda:fdadef:02-03. 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: (Carmen Arias)
If references are entirely missing, you can add them using this form.