Efficiency-Inducing Taxation for a Monopolistically Supplied Depletable Resource
- Author(s): Bergstrom, Ted
- Cross, John
- Porter, Dick
- et al.
We show that for a depletable resource, if the competitive time path of prices is known, and if the profit function is concave, then there is an easily described time path of taxes and/or subsidies that would induce a monopolist to follow an efficient time path of extraction.