By Anthony Scott
Debate at the query of who may still obtain the excess profit generated via natural-resource exploitation -- Ottawa or the provinces -- is generally carried on by way of background, politics customized, legislations, social values, and environmental concerns. This selection of essays offers analyses of the query from the economist's viewpoint.
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Additional resources for Natural Resource Revenues: A Test of Federalism
Every jurisdiction can be assumed to have reinvested past resource revenues. Thus their present resource revenue is not consumable, but merely the current contribution to the provincial fund; the actual consumable wealth is the interest on this fund. Alternatively, today's decision makers can be assumed to have available today the sum of the last two columns: the interest on the fund plus today's actual resource revenues. IV. CONCLUDING REMARKS The numbers and graphs in the previous section show that it does "matter" who gets the natural resource revenue.
41 For the years 1901 to 1915 the source for series 1 and 2 is Perry (4) pp. S. (2). The difference was applied, as a set of multipliers, to Perry's Public Domain figures from 1901 to 1912, 1914, and 1915. These adjusted Perry Public Domain figures were added to the unadjusted series two direct taxes figures to arrive at our Natural Resource Revenue (series 1 plus 2) for 1901 to 1915. S. S. (6). ) were obtained from Perry (4) as were the series 2 figures. Once again there were problems with matching year ends.
Then we are left only with a. and b. These may well survive, as they have in the past. Provinces should collect revenues for the special services that they provide, especially when such expenditures must be amortized over a short period of time. But the same criteria arguments point to a division of the revenues. The federal government also provides special services to the resource industries. It may also serve as the proxy collector of revenues needed for the special expenditures necessitated by the immigration from regions where resources have been exhausted.