Rethinking Royalty Rates: Why There Is a Better Way to Tax Oil and Gas Development

2011 – Colin Busby, Benjamin Dachis and Bev Dahlby

September 14, 2011 – When provinces raise royalties charged on oil and gas production, the result can be less, not more tax revenues, according to a report from the C.D. Howe Institute. In  Rethinking Royalty Rates: Why There Is a Better Way to Tax Oil and Gas Development, authors Colin Busby, Benjamin Dachis and Bev Dahlby show how resource-rich provinces would be better off relying more on auctions for exploration and development rights and relying less on royalties levied on output.

For the study go to:
http://www.cdhowe.org/pdf/commentary_333.pdf