QED Working Paper Number
1169
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 fi rm we observe rent declining over an interval. We then take up the familiar planning model and isolate the tax required to make decentralized extraction by many distinct, competitive fi rms replicate the planning solution.
Keywords
exhaustible resources
resource rent
competitive extraction
corrective tax
Working Paper
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