Growth and non-renewable resources: The different roles of capital and resource taxes
Research output: Contribution to journal › Journal article › Research › peer-review
We contrast effects of taxing non-renewable resources with the effects of traditional capital taxes and investment subsidies in an endogenous growth model. In a simple framework we demonstrate that when non-renewable resources are a necessary input in the sector where growth is ultimately generated, interest income taxes and investment subsidies can no longer affect the long-run growth rate, whereas resource tax instruments are decisive for growth. The results stand out both against observations in the literature from the 1970's on non-renewable resources and taxation-observations which were not based on general equilibrium considerations-and against the general view in the newer literature on taxes and endogenous growth which ignores the role of non-renewable resources in the "growth engine"
Original language | English |
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Journal | Journal of Environmental Economics and Management |
Volume | 53 |
Issue number | 1 |
Pages (from-to) | 80-98 |
ISSN | 0095-0696 |
DOIs | |
Publication status | Published - 2007 |
- Faculty of Social Sciences - non-renewable resources, endogenous growth, capital taxation, carbon taxes, climate change, optimal taxation
Research areas
ID: 1208665