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Quarterly Journal of Economics Vol. 100 No. 1 1985

The Taxation of Exhaustible Resources

Villamor Gamponia; Robert Mendelsohn

University of Washington

Abstract

The efficiency and equity effects of unit, yield, property, and windfall profits taxes upon nonrenewable resources are compared. The yield tax is the most efficient, and unit and property taxes are the least efficient of current taxes. If the base price of the windfall profits tax is set close to extraction cost, the windfall profits tax can be even more efficient than the yield tax. All the tax burdens fall primarily upon owners. In fact, with the property and windfall profits taxes, consumers can even be made better off.

DOI
10.2307/1885740
Volume
100
Issue
1
Pages
165
Sources
openalex crossref

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