Premium
Rent Royalties *
Author(s) -
MAYO WAYNE
Publication year - 1979
Publication title -
economic record
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.365
H-Index - 42
eISSN - 1475-4932
pISSN - 0013-0249
DOI - 10.1111/j.1475-4932.1979.tb02222.x
Subject(s) - investment (military) , distribution (mathematics) , economics , neutrality , value (mathematics) , microeconomics , net present value , industrial organization , business , production (economics) , computer science , mathematical analysis , philosophy , mathematics , epistemology , machine learning , politics , political science , law
On neutrality grounds, royalties designed to tax only the economic rent of mining or petroleum operations are preferable to royalty schemes currently used in Australia. The Resource Rent type of royalty generally has a predictable but asymmetrical effect on the probability distribution of the net present value of projects being considered for investment. This effect is independent of the characteristics of individual projects, and so with appropriate selection of the operating parameters, this royalty scheme would not greatly affect the screening of projects for investment purposes.