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Author Uri, N. D.
Source United States Department of Energy Office of Scientific and Technical Information
Content type Text
Language English
Subject Keyword ENERGY PLANNING, POLICY AND ECONOMY ♦ AGRICULTURE ♦ ECONOMIC ANALYSIS ♦ COAL ♦ TAXES ♦ NATURAL GAS ♦ NUCLEAR POWER ♦ PETROLEUM PRODUCTS ♦ CALORIFIC VALUE ♦ ECONOMIC IMPACT ♦ ECONOMIC POLICY ♦ ENERGY POLICY ♦ INDUSTRY ♦ USA ♦ CARBONACEOUS MATERIALS ♦ COMBUSTION PROPERTIES ♦ DEVELOPED COUNTRIES ♦ ECONOMICS ♦ ENERGY SOURCES ♦ FLUIDS ♦ FOSSIL FUELS ♦ FUEL GAS ♦ FUELS ♦ GAS FUELS ♦ GASES ♦ GOVERNMENT POLICIES ♦ MATERIALS ♦ NORTH AMERICA ♦ POWER ♦ Energy Planning & Policy- Economics- (1992-) ♦ Energy Planning & Policy- Policy, Legislation, & Regulation ♦ Energy Planning & Policy- Fossil Fuels ♦ Energy Planning & Policy- Nuclear Energy
Abstract This paper investigates the effects of a broad-based energy tax on the economy in general and the agricultural sectors in particular. The effects of imposing a tax on natural gas, coal, and nuclear power of 25.7 cents per million Btu's and a tax on refined petroleum products of 59.9 cents per million Btu's on prices and quantities are examined. A Btu tax on energy imposed at the point of production will result in lower output by the producing sectors ($122.4 billion), a decrease in the consumption of goods and services ($64.6 billion), and a reduction in welfare ($66.6 billion). The government would realize an increase in revenue of about $50.5 billion. In the case of the Btu tax being imposed at the point of consumption, there will be lower output by the producing sectors ($83.7 billion), a reduction in the consumption of goods and services ($48.3 billion), and a reduction in welfare ($49.5 billion). The government would realize an increase in revenue of $41.5 billion. The agricultural sectors would be measurably affected. For example, if the Btu tax is imposed at the point of production, output in the program crops sector will fall ($637 million), output in the livestock sector will decline ($257 million), output in the all other agriculture commodities sector will be reduced ($54 million), and output in the forestry sector will rise ($144 million). If the Btu tax is imposed at the point of consumption, output in the program crops sector will fall ($720 million), output in the livestock sector will decline ($453 million), output in the all other agriculture commodities sector will be reduced ($371 million), and output in the forestry sector will rise ($25 million).
ISSN 00908312
Educational Use Research
Learning Resource Type Article
Publisher Place United States
Journal Energy Sources
Volume Number 16
Issue Number 1


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