In September 1982, The RAND Corporation published a study of how a new severance tax on California oil production would affect, among other things, government tax revenues, profits, and oil production (F. Camm et al., Effects of a Severance Tax on Oil Production in California, R-2940, September 1982). Funded by the California State Assembly, the study provides a framework for discussion of several severance tax alternatives under consideration. Shortly thereafter, eleven oil companies jointly funded a study by The Economics Group, Inc., which reviewed the RAND analysis and attempted to extend parts of it (R. T. Deacon et al., The Proposed California Crude Oil Severance Tax: An Economic Analysis, The Economics Group, Inc., RFD-83038-CC, February 1983). This Note is a rejoinder to that study.
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