1. Changing Energy Prices and Economic Rents: The Case of Western Coal.
- Author
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Mutti, John H. and Morgan, William E.
- Subjects
RENT (Economic theory) ,COAL industry ,POWER resources ,TAXATION - Abstract
This article discusses the interactions among the recipients of economic rents based on the coal industry in Wyoming. Rapidly rising real energy prices during the 1970s, substantially influenced by the policies of the Organization of Petroleum Exporting Countries, have generated economic rents, because energy prices have risen faster than average costs of production of primary energy resources. These quasi-rents, as well as monopoly revenues and other forms of economic rent, have been captured by some factors of production and certain energy-producing states. Politically, a national debate has developed along geographic lines between the energy-producing states and energy-consuming states regarding the distribution of these rents. As one example, severance tax limitation bills have been introduced in U.S. Congress by representatives from coal-importing state-local coal production type taxes to 12.5 percent of value. These legislative proposals reflect the belief that certain coal-producing states are successfully exporting their energy taxes to energy-importing states. The coal-producing states contend that their severance taxes reflect the public costs of financing energy impact or in economic terms, no monopoly revenue or rent arises.
- Published
- 1983
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