Growth and non-renewable resources: The different roles of capital and resource taxes
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Growth and non-renewable resources : The different roles of capital and resource taxes. / Groth, Christian; Schou, Poul.
In: Journal of Environmental Economics and Management, Vol. 53, No. 1, 2007, p. 80-98.Research output: Contribution to journal › Journal article › Research › peer-review
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TY - JOUR
T1 - Growth and non-renewable resources
T2 - The different roles of capital and resource taxes
AU - Groth, Christian
AU - Schou, Poul
N1 - JEL classification: H2, O4, Q3
PY - 2007
Y1 - 2007
N2 - 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"
AB - 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"
KW - Faculty of Social Sciences
KW - non-renewable resources
KW - endogenous growth
KW - capital taxation
KW - carbon taxes
KW - climate change
KW - optimal taxation
U2 - 10.1016/j.jeem.2006.07.004
DO - 10.1016/j.jeem.2006.07.004
M3 - Journal article
VL - 53
SP - 80
EP - 98
JO - Journal of Environmental Economics and Management
JF - Journal of Environmental Economics and Management
SN - 0095-0696
IS - 1
ER -
ID: 1208665