Taxes on North Sea Oil Production Flashcards
1
Q
Why might the demand for oil be price inelastic?
A
Oil is a necessity for many industries, and substitutes are limited in the short term.
2
Q
What are the external costs associated with oil production?
A
Environmental damage, greenhouse gas emissions, and health effects from pollution.
3
Q
Why might taxing North Sea oil have limited effectiveness globally?
A
Other countries may not impose similar taxes, and global demand for oil might remain high.
