Halkos, George and Papageorgiou, George (2012): Simple taxation schemes on non–renewable resources extraction.
Download (208kB) | Preview
Traditional economic theory, up to the middle of the twentieth century, builds up the production functions regardless of the inputs’ scarcity. In the last few decades it has become clear that in many cases inputs are depletable quantities and at the same time a lot of constraints are imposed in their usage in order to ensure economic sustainability. Furthermore, the management of exploitation and use of natural resources (either exhaustible or renewable) has been discussed by analyzing dynamic models applying methods of Optimal Control Theory. This theory provides solutions that are concerned with a single decision maker who can control the model’s dynamics facing a certain performance index to be optimized. In this paper we consider some simple taxation schemes based both on price charged and on the stock size as well. As the feedback taxation rules are more efficient than the other (non feedback) rules we have constructed the simple taxation scheme and found the analytical expression of the tax function.
|Item Type:||MPRA Paper|
|Original Title:||Simple taxation schemes on non–renewable resources extraction|
|Keywords:||Non-renewable resources; differential games; Markov equilibrium|
|Subjects:||Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q3 - Nonrenewable Resources and Conservation > Q32 - Exhaustible Resources and Economic Development
C - Mathematical and Quantitative Methods > C6 - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling > C61 - Optimization Techniques; Programming Models; Dynamic Analysis
Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q3 - Nonrenewable Resources and Conservation > Q30 - General
C - Mathematical and Quantitative Methods > C6 - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling > C62 - Existence and Stability Conditions of Equilibrium
|Depositing User:||G.E. Halkos|
|Date Deposited:||30. Aug 2012 09:05|
|Last Modified:||13. Feb 2013 08:35|
Basar, T., Olsder, G.J., 1995, Dynamic non-cooperative game theory. 2nd ed. London: Academic Press.
Batabyal, A. A. 1995. The design perspective in resource and environmental economics. Resource and Energy Economics 17: 317-325.
Batabyal, A., 1996, Consistency and Optimality in a Dynamic Game of Pollution Control I: Competition, Environmental and Resource Economics. 8, 205 – 220.
Benchekroun, Long, N.V., (1998), Efficiency inducing taxation for polluting oligopolists, Journal of Public Economics, 70(2), 325-342.
Benchekroun, H., Long, N.V., (2002), Transboundary Fishery: A Differential Game Model, Economica, 69, 207 – 229.
Benchekroun, H., (2003), Unilateral Production Restrictionsin a Dynamic Duopoly, Journal of Economic Theory, 111, 2, 214 – 239.
Benchekroun, Long, N.V., (2006), The curse of windfall gains in non renewable resources oligopoly, Australian Economic Papers, 99 – 105.
Chiarella,C., Szidarovszky, F., (2000), The Asymptotic Behaviour of Dynamic Rent – Seeking Games, Computers and Mathematics with Applications, 169 – 178.
Clark, C., (1976), Mathematical Bioeconomics, Wiley Interscience, New York.
Clark, C., (1980), Restricted access to common – property fishery resources: A game theoretic analysis, in: Dynamic Optimization and Mathematical Economics, ed. T. Liu (Plenum Press, New York.
Dasgupta, P., Heal, G., (1979), Economic theory and exhaustible resources, James Nisbet and Cambridge University Press, Welwyn and Cambridge.
Dockner, E., Feichitinger, G., Mehlmann, (1989), Noncooperative solutions for a differential game model of fishery, Journal of Economic Dynamics and Control, 13, 1–20.
Dockner, E.J., Jorgensen, S., Long, N.V, and Sorger, G., 2000, Differential Games in Economics and Management Science. Cambridge: Cambridge University Press.
Karp, L., Livernois, J. (1994), Using automatic tax changes to control pollution emissions, Journal of Environmental Economics and Management, 27, 38-48.
Lambertini, L., (2007). Oligopoly with Hyperbolic Demand: A Differential Game Approach, University of Bologna, Working paper.
Puu, T., 1991, Chaos in duopoly pricing. Chaos, Solitons & Fractals 1, 573-581.
Puu, T., 1996. Complex dynamics with three oligopolists. Chaos, Solitons & Fractals 7, 2075-2081.
Puu, T., Norin A., 2003. Cournot duopoly when the competitors operate under capacity constraints. Chaos, Solitons & Fractals 18, 577-592.
Puu, T., Marin, R.M., 2006. The dynamics of a triopoly Cournot game when the competitors operate under capacity constraints. Chaos, Solitons & Fractals 28, 403-413.
Puu, T., (2008). On the stability of Cournot equilibrium when the number of competitors increases, Journal of Economic Behavior and Organization, 66, 445 – 456.