Alternative Forms of Mineral Taxation, Market Failure and the Environment
Summary:
This paper examines the environmental effects of mineral taxes in a framework that recognizes the importance of rates and cumulative externalities and proposes an appropriate corrective tax. It concludes that mineral resources taxation should combine neutral taxes with a dynamic Pigovian type tax proposed in the paper. Such a tax resembles a specific tax plus an element that depends on the amount of remaining reserves. This resemblance means that, in practice, specific taxes may act as proxies for environmental taxes. The paper also points at complementarities and tradeoffs between economic and environmental concerns that could arise in reforming mineral taxes.
Series:
Working Paper No. 1992/049
Subject:
Environment Environmental taxes Natural resources Non-renewable resources Resource rent tax Taxes
Notes:
Also published in Staff Papers, Vol. 40, No. 1, March 1993.
English
Publication Date:
July 1, 1992
ISBN/ISSN:
9781451971729/1018-5941
Stock No:
WPIEA0491992
Pages:
44
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