Title

State Taxation, Exploration, And Production In The U.S. Oil Industry

Abstract

How do firms in nonrenewable resource industries respond to changes in state taxes? This paper presents simulations of changes in state production (severance) tax policy on the timing of exploration and output in Wyoming. The framework developed allows for interactions between taxes levied by different levels of government. Results suggest that oil production is highly inelastic with respect to changes in production taxes. Policy implications suggest that increases in production taxes on oil risk little loss in future production. The extent to which these results may generalize to other oil producing states is considered.

Publication Date

11-1-2003

Publication Title

Journal of Regional Science

Volume

43

Issue

4

Number of Pages

749-770

Document Type

Article

Personal Identifier

scopus

DOI Link

https://doi.org/10.1111/j.0022-4146.2003.00319.x

Socpus ID

0345118973 (Scopus)

Source API URL

https://api.elsevier.com/content/abstract/scopus_id/0345118973

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