Document Type : Research Paper

Authors

• PARISA GHOLIPOUR FEIZI ¹
• GHODRATOLLAH EMAMVERDI ¹
• Marjan Damankeshideh ²
• ALI ASGHAR ESMAILNIA KETABI ²

¹ Department of Economics, Central Tehran branch, Islamic Azad University, Tehran, Iran

² Department of Economics, Central Tehran Branch, Islamic Azad University, Tehran, Iran

Abstract

Since the income tax of a production company may reduce its profit and optimal production, this study investigates the effects of such taxes on the discounted profit, optimal production rate, and finally, the changes in the optimal path of oil production of the company to generalize the mentioned subject to the oil investor company by extracting the optimal path of oil production for the Dalpari Oil Field for the years (2018-2037) and the imposition of tax on the income of the oil investor company. The extant study is presented in the form of several scenarios and the framework of a dynamic optimization model (Bellman model) to analyze and compare the obtained results with the proposed production plan of the considered field. The results of the analyzed scenarios show that the adaption of such tax policies can affect the optimal production path according to the stated hypothesis. However, the mentioned changes in different scenarios can have negative aggravating or reverse effects on the producer`s interests.

Keywords

• Imposition of Tax On Oil Production
• Dynamic Optimization of Oil Production
• Oil Producing Company

Main Subjects

• The Economics of Technology, Energy and Sustainable Development