Many forums have been recently organised in South Africa to discuss the level of State intervention in the minerals sector, the expropriation of private mining companies, and the transfer of mineral wealth to the people. The objective of this research was to explore the possible impact that the nationalisation and the introduction of a resource rent tax will have on the capability of platinum mining companies to create sustainable employment while remaining profitable in South Africa.The research was qualitative and exploratory in nature. The sampling frame included major platinum group metals companies, which constitute an industry concentration of more than 50 per cent. Semi-structured interviews were conducted with 13 senior managers and executives from the platinum mining industry.The results have shown that nationalisation of platinum mines, where the government has total ownership or majority control of the company, will not create sustainable employment in South Africa. In addition, nationalisation of mines will isolate South Africa from external capital because private investors have been reluctant to put their money where mining companies were nationalised, especially in Africa. Although the introduction of a resource rent tax may be viable in a short term, it is believed that the competitiveness of mining companies operating in South Africa will be compromised. / Dissertation (MBA)--University of Pretoria, 2012. / Gordon Institute of Business Science (GIBS) / unrestricted

A problem South-Africa is facing is that the wealth created by mines (also called economic rent) may not yet get distributed satisfactorily evenly between the nation and investors. In an attempt to find a solution to the abovementioned dilemma, government initiated a feasibility study for the nationalisation of mines. This proposal was however waived for two reasons: firstly that it would be unaffordable for government to buy out private companies and secondly, that it would create discontent amongst foreign investors, which would result in them withdrawing access to financing. Consequently, the ANC, during 2012 in the SIMS report proposed a possible implementation of a resource rent tax (RRT), akin to Australia’s, to ensure that the State receives a greater/more equitable share of the wealth. Developments in the mining industry since 2012, have drawn attention to two serious issues: labour related concerns and continued strikes as well as a reduction in foreign direct investment as a result of negative investor sentiment towards South Africa. These issues are directly related to the perception that the community (including mine workers) do not benefit fairly from the wealth created by mines, which results in ongoing labour unrests and subsequently in investment withdrawal. It would seem that even though no further consideration has been given to the implementation of a RRT since 2012, it may be regarded as a possible and sensible solution. This study focuses on the possible impact on the taxation payable by the South African mining industry, if a RRT were to be introduced. Research has been conducted in order to obtain an understanding of the working of a RRT, to analyse South Africa’s current tax regime, to develop a simple hypothetical case study to evaluate both the quantitative and qualitative impact of the introduction of a RRT system on South African mining tax (for both the investor and the state). The study concludes that the introduction of a RRT can potentially result in a more fair distribution of resource rents between the investor and the state (community - rightful owners of the natural resources). Research however proved that this is likely to influence the investor’s investment decisions which in turn may result in a general downturn in mining operations and profits. Based on the qualitative results of a case study, a RRT was proven to be inefficient due to the fact that it will only tax mining companies with a higher rate of return and in effect higher risk companies. As investors are prepared to take on high risk projects for the purpose of generating higher returns, the introduction of an RRT reducing this return might influence an investor’s decision. The potential impact on investors’ decisions may be counteracted through further research with regard to variables used in the RRT model namely the percentage of tax charged and the required rate of return. A RRT is therefore proven to have some benefits, even though some aspects will require further evaluation. / MCom (South African and International Tax), North-West University, Potchefstroom Campus, 2015

A problem South-Africa is facing is that the wealth created by mines (also called economic rent) may not yet get distributed satisfactorily evenly between the nation and investors. In an attempt to find a solution to the abovementioned dilemma, government initiated a feasibility study for the nationalisation of mines. This proposal was however waived for two reasons: firstly that it would be unaffordable for government to buy out private companies and secondly, that it would create discontent amongst foreign investors, which would result in them withdrawing access to financing. Consequently, the ANC, during 2012 in the SIMS report proposed a possible implementation of a resource rent tax (RRT), akin to Australia’s, to ensure that the State receives a greater/more equitable share of the wealth. Developments in the mining industry since 2012, have drawn attention to two serious issues: labour related concerns and continued strikes as well as a reduction in foreign direct investment as a result of negative investor sentiment towards South Africa. These issues are directly related to the perception that the community (including mine workers) do not benefit fairly from the wealth created by mines, which results in ongoing labour unrests and subsequently in investment withdrawal. It would seem that even though no further consideration has been given to the implementation of a RRT since 2012, it may be regarded as a possible and sensible solution. This study focuses on the possible impact on the taxation payable by the South African mining industry, if a RRT were to be introduced. Research has been conducted in order to obtain an understanding of the working of a RRT, to analyse South Africa’s current tax regime, to develop a simple hypothetical case study to evaluate both the quantitative and qualitative impact of the introduction of a RRT system on South African mining tax (for both the investor and the state). The study concludes that the introduction of a RRT can potentially result in a more fair distribution of resource rents between the investor and the state (community - rightful owners of the natural resources). Research however proved that this is likely to influence the investor’s investment decisions which in turn may result in a general downturn in mining operations and profits. Based on the qualitative results of a case study, a RRT was proven to be inefficient due to the fact that it will only tax mining companies with a higher rate of return and in effect higher risk companies. As investors are prepared to take on high risk projects for the purpose of generating higher returns, the introduction of an RRT reducing this return might influence an investor’s decision. The potential impact on investors’ decisions may be counteracted through further research with regard to variables used in the RRT model namely the percentage of tax charged and the required rate of return. A RRT is therefore proven to have some benefits, even though some aspects will require further evaluation. / MCom (South African and International Tax), North-West University, Potchefstroom Campus, 2015

Exhaustible resource rents are an important taxable base in many countries, with revenue sharing often part of the scheme. In some cases large shares are retained for the central government. Generally, the discussions of exhaustible resource taxation consider assignment of resource rent tax base and revenue sharing from the limited perspectives of efficiency and stability. Tax assignment and sharing arrangements are assumed to have a neutral effect on investment of resource rents in long-lived public goods. We attempt to demonstrate that this may not be the case, specifically looking at the question of whether rent assignment is neutral to effects on investment of rents in long-lived public goods, a normative policy objective, and under what conditions it occurs. We test the theoretical propositions with data from the Russian Federation to derive empirical results. The results from the Russian Federation point toward an important dimension of rent tax assignment in a federation. They results show that ceteris paribus, higher share of rent for the federation may lead to lower investment in long-lived public goods and may be constrained by stability. Another argument has been made for reconsidering rent tax assignment using assertive ethnic identity as a manifestation strong ownership claims. Communities with strongly valued identities value ownership over land and exhaustible resource endowments in their areas. This may be the case especially if ethnic identity is important to the resource owning community. The empirical results show that a decrease in the regional share of rent resulted in a fall in investments in the republics and regions with strong ethnic identity. Republics among the producing regions have historical claims to a distinct identity and may have a preference for preserving their identity. This preference is manifested as higher levels of rent investment. Following this line of argument, it can be concluded that rent assignment, through rent tax or revenue assignment, should favor producing regions within the range of stability in a federation, if the objective is achieving higher investment in long-lived public goods.

Exhaustible resource rents are an important taxable base in many countries, with revenue sharing often part of the scheme. In some cases large shares are retained for the central government. Generally, the discussions of exhaustible resource taxation consider assignment of resource rent tax base and revenue sharing from the limited perspectives of efficiency and stability. Tax assignment and sharing arrangements are assumed to have a neutral effect on investment of resource rents in long-lived public goods. We attempt to demonstrate that this may not be the case, specifically looking at the question of whether rent assignment is neutral to effects on investment of rents in long-lived public goods, a normative policy objective, and under what conditions it occurs. We test the theoretical propositions with data from the Russian Federation to derive empirical results. The results from the Russian Federation point toward an important dimension of rent tax assignment in a federation. They results show that ceteris paribus, higher share of rent for the federation may lead to lower investment in long-lived public goods and may be constrained by stability. Another argument has been made for reconsidering rent tax assignment using assertive ethnic identity as a manifestation strong ownership claims. Communities with strongly valued identities value ownership over land and exhaustible resource endowments in their areas. This may be the case especially if ethnic identity is important to the resource owning community. The empirical results show that a decrease in the regional share of rent resulted in a fall in investments in the republics and regions with strong ethnic identity. Republics among the producing regions have historical claims to a distinct identity and may have a preference for preserving their identity. This preference is manifested as higher levels of rent investment. Following this line of argument, it can be concluded that rent assignment, through rent tax or revenue assignment, should favor producing regions within the range of stability in a federation, if the objective is achieving higher investment in long-lived public goods.

Deteriorating quantity and quality of wetland ecosystem services is a major challenge for the conservation of the Lawuba wetland: socioeconomically the most important wetland area in Swaziland. In response, this study was designed to assess local dependent communities’ factual knowledge of the benefits and threats to the wetland, and their attitudes towards its conservation. In addition, the study employed environmental valuation techniques to estimate the annual economic value of the wetland’s fibre provisioning services and four notions of resource rent associated with the harvested fibre: rent on fibre consumed on site as a final product; and rent on fibre transported for 90 kilometres to Manzini market where it is sold, either as a final product or used as an intermediate input in the production of handicrafts. The fibre ecosystem service was specifically selected on account of its socioeconomic significance. Value of the fibre provisioning service was estimated using market price-based methods, while the magnitude of the different notions of resource rent was estimated using the net price method. A random sample of 63 respondents was used to provide data on the benefits, threats, attitudes, and annual economic value which households attach to the harvested fibre. This sample also provided data used to compute the resource rent associated with fibre harvested and consumed on-site. A random sample of 5 respondents provided data used to compute the resource rent on fibre transported and sold in Manzini as a final consumption good. Finally, a random sample of 5 respondents provided data used to compute the resource rent on fibre manufactured at Lawuba and sold in Manzini. Households had high levels of knowledge of the benefits and threats to the Lawuba wetland. They also had positive attitudes towards its conservation. Chi-square and ANOVA tests rejected the null hypothesis of no association between household: (i) knowledge of the benefits derived from the wetland and income (F = 12.67, p = 0.000), (ii) knowledge of the threats endangering the wetland and education (χ2 = 38.474, p = 0.000), (iii) knowledge of the threats endangering the wetland and income (F = 7.25, p = 0.000), (iv) attitudes towards its conservation and income (F = 13.320, p = 0.000) and (v) attitudes towards its conservation and gender (χ2 = 11.854, p = 0.003). The value of fibre provisioning services was estimated at between US $20,310 and US $32,673 per annum, which translates to US $70 per capita per annum. Magnitude of the resource rent increased along the value chain as theory would predict. It was estimated at US $1.92 (for fibre harvested and consumed on site), US $2.27 (for fibre sold at Manzini as a final product), and US $18 (for fibre manufactured at Lawuba and sold in Manzini). Inasmuch as the study established a positive resource rent, no institutions currently exist for rent capture and appropriate re-investment to support sustainable wetland conservation. The study thus recommends the need to set up suitable resource management institutions. / Dissertation (MSc Agric)--University of Pretoria, 2014. / gm2014 / Agricultural Economics, Extension and Rural Development / unrestricted

<p>1st essay abstract:   </p> <p>This study investigates the economic rents of the wind energy industry in the U.S. and their economic impacts on local economies, using Benton and White counties in Indiana as study regions. By calibrating a partial equilibrium model using 2007-2010 data of the industry, we find a resource rent of $9.72/MWh. We then use a general equilibrium model with Dutch Disease features to study the optimal tax levied on this rent, and the economic impacts of redistributing the tax revenues back to the county residents. An exhaustive rent tax increases real county personal income by as high as 9.1% and as low as 2%, depending on the county’s features. Applying an incentive compatible resource rent tax rate and redistributing the revenues to the county’s laborers leads to an increase of 3.5% and 16% in their income in White and Benton counties, respectively. We also perform robustness checks by allowing labor mobility between counties to examine the impacts of resource rents on the county economy under endogenous labor growth. </p> <p>1st essay data: All data acquired comes from the U.S. Census Bureau, county Quarterly Census of Employment and Wages, the National Renewable Energy Laboratory reports, the Lawrence Berkeley Laboratory, Indeed.com, news articles, and wind developers websites.</p> <p><br></p> <p>2nd essay abstract:   </p> <p>Using the Regional Energy Deployment System (ReEDS) model, we estimate the deadweight loss imposed by county-level wind power development restrictions in the form of increased electricity costs due to suboptimal siting. This is accomplished by optimizing the power system of the United States' Midcontinent Independent System Operator (MISO) from 2020 to 2050. We perform the optimization with and without land-use constraints arising from simulated potential local ordinances restricting wind power development, and under multiple scenarios reflecting different renewable portfolio standards (RPS). We find that local restrictions on wind power increase the total system cost by 0.15%-0.3% and the wholesale electricity price by 1.8%-2.7%, depending on the RPS scenario. Changes in the generation and installed capacity mixes are more substantial and depend on both the level of county restrictions on wind power, and RPS requirements, thus indicating an interaction between RPS requirements and local wind power restrictions. We also find that plausible restrictions on wind development do not pose major barriers to meeting renewable energy targets in a cost-effective manner.</p> <p>2nd essay data: All data is embedded inside the Regional Energy Deployment System (ReEDS) model of the National Renewable Energy Laboratory.</p> <p><br></p> <p>3rd essay abstract:   </p> <p>The USDA promotes adoption of conservation practices beneficial for soil health and environment through agricultural cost-share payment programs such as EQIP or CSP. Although the efficiency of these programs has been evaluated through additionality estimates, which represent the percentage of farmers who would adopt a practice only with payments, the potential complementarities between certain combinations of practices have often been overlooked. Unaccounted for, these complementarities may impact additionality estimates. This paper provides a thorough investigation of additionality estimates of common practices, including no-till, nutrient management and cover crops, accounting for potential complementarities between them. We find no significant differences between traditional additionality estimates and estimates accounted for potential complementarities between the three practices. The results thus indicate that despite agronomic evidence of synergies in co-adopting these three practices, we find no solid indication of adoption complementarity between them in reality. </p> <p>3rd essay data: Data is acquired from the U.S. Department of Agriculture and Esri maps.</p>