The introduction of the Uniform Capital Allowance ("UCA") regime, with effect from 1 July 2001, has far reaching implications for the mining sector. One of the significant consequences of this new regime is to fundamentally alter the tax considerations applying to the acquisition and disposal of...
Auctioning off the allowances would eliminate this income-effect distortion on the individually desired level of free permit allocations, but then we are effectively back in a tax-like system. Both approaches (an internationally harmonized but domestically collected carbon price, and freely distributed...