The Extractive Firm’s Cost Spillover Tax for the Extended Hotelling Model

We consider a competitive extraction industry comprising many small firms, each with a slightly different quality of mineral holdings. With "rapidly" declining quality of holding per firm we observe rent declining over an interval. We then take up the familiar planning model and iso- late the tax required to make decentralized extraction by many distinct, competitive firms replicate the planning solution.


Issue Date:
2007-11
Publication Type:
Working or Discussion Paper
Record Identifier:
https://ageconsearch.umn.edu/record/273645
Language:
English
Total Pages:
14
JEL Codes:
Q31; D41
Series Statement:
Working Paper No. 1169




 Record created 2018-06-13, last modified 2018-06-14

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