Template-Type: ReDIF-Article 1.0
Author-Name:  David R Henderson
Title:  The Perverse Effects of A Variable Oil Import Fee
Classification-JEL: F0
Pages:  159-170
Volume:  Volume 10
Issue:  Number 4
Year:  1989
Abstract:  If the world oil market is at all monopolistic, then a variable import fee (VIF) has more perverse effects than a flat import fee on the country that imposes it. Like an import quota, a VIF makes the importing country's demand for oil less elastic and increases the price paid by buyers in that country. Moreover, a VIF does not necessarily yield any tariff revenue to the country that imposes it. Finally, under very plausible conditions, a VIF may facilitate price discrimination by a monopolistic foreign producer against the country that imposes it.
Handle: RePEc:aen:journl:1989v10-04-a10
File-URL: http://www.iaee.org/en/publications/ejarticle.aspx?id=1978
File-Format: text/html
File-Restriction: Access to full text is restricted to IAEE members and subscribers.