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《Economic Research Journal》 2008-05
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Chinese Oil and Gas Depletion Costs and Macroeconomic Impacts of Resource Tax

Lin Boqiang and He Xiaoping (China Center for Energy Economics Research at Xiamen University)  
Because of the scarcity of nonrenewable energy resources, their current exploitations have impacts on both future generation's welfare and sustainable economic development. Applying the user cost approach developed by El Serafy, we estimated the depletion costs of the Chinese oil and gas resources. The results indicate that while China in the recent years accelerated utilization of oil and gas resources, the user costs from their exploitation have been greatly increasing. Imposing resource tax to reflect scarcity in resource prices will correct the current undervaluation of energy resources and distortion of energy prices. The quantitative analysis of CGE model indicates that a resource tax under 20% on oil and gas will not have large negative impact on macro-economy. The results also show that resource tax could take into account the impact of energy resource depletion on future generation's welfare and will have great significance for sustainable development.
【CateGory Index】: F426.22;F224
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