Although the resource curse offers evidence for the national crowding out generated by resource windfalls from mining, subnational crowding is not fully understood. This knowledge gap is problematic because these windfalls should cover the negative externalities that exist in host zones. Additionally, these communities have different fiscal responsibilities due to the mining industry's environmental, economic, and social costs. This article estimates the subnational crowd out of mining windfalls on local tax collection by considering different levels of fiscal responsibility.

Abstract

Briefing highlights 

–    Analyzing policy attitudes is important for understanding environmental policy feasibility.

–    Pure self-interest is not sufficient to explain people’s policy positions. There are other factors that are also important for policy attitude formation.

–    Policy packaging, earmarking and revenue recycling can potentially change people’s policy positions.