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Energy Prices and Alberta Government Revenue Volatility

Author

Listed:
  • Stuart Landon

    (University of Alberta)

  • Constance Smith

    (University of Alberta)

Abstract

Alberta government needs a revamped resource revenue stabilization fund to overcome the effects of wild swings in resource revenue and spending.Energy prices change substantially and unpredictably, causing revenue planning trouble for the Alberta government. Adjusting to these movements typically involves economic, social, and political costs that need to be factored into the government’s fiscal outlook. The best option for handling this is a resource revenue stabilization fund that collects a fixed proportion of resource revenue each year, and funds the provincial budget each year with a fixed share of the fund’s assets.

Suggested Citation

  • Stuart Landon & Constance Smith, 2010. "Energy Prices and Alberta Government Revenue Volatility," C.D. Howe Institute Commentary, C.D. Howe Institute, issue 313, November.
    • Handle: RePEc:cdh:commen:313
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    File URL: https://www.cdhowe.org/public-policy-research/energy-prices-and-alberta-government-revenue-volatility
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. AlKathiri, Nader & Atalla, Tarek N. & Murphy, Frederic & Pierru, Axel, 2020. "Optimal policies for managing oil revenue stabilization funds: An illustration using Saudi Arabia," Resources Policy, Elsevier, vol. 67(C).
    2. Olateju, Babatunde & Monds, Joshua & Kumar, Amit, 2014. "Large scale hydrogen production from wind energy for the upgrading of bitumen from oil sands," Applied Energy, Elsevier, vol. 118(C), pages 48-56.
    3. Colin Busby & William Robson, 2013. "Canada's 2012 Fiscal Accountability Rankings," C.D. Howe Institute Commentary, C.D. Howe Institute, issue 373, February.
    4. Colin Busby & Alex Laurin, 2013. "The 8 Percent Solution: A Sensible Tax Compromise for Albertans," e-briefs 159, C.D. Howe Institute.
    5. Balaev, Alexey I. (Балаев, Алексей), 2017. "Factor Analysis of the Russian Budget System Revenues [Факторный Анализ Доходов Российской Бюджетной Системы]," Economic Policy, Russian Presidential Academy of National Economy and Public Administration, vol. 3, pages 8-37, June.
    6. Olateju, Babatunde & Kumar, Amit, 2013. "Techno-economic assessment of hydrogen production from underground coal gasification (UCG) in Western Canada with carbon capture and sequestration (CCS) for upgrading bitumen from oil sands," Applied Energy, Elsevier, vol. 111(C), pages 428-440.
    7. Stuart Landon and Constance Smith, 2015. "Rule-Based Resource Revenue Stabilization Funds: A Welfare Comparison," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2).
    8. Pierre Fortin, 2011. "Staying the Course: Quebec's Fiscal Balance Challenge," C.D. Howe Institute Commentary, C.D. Howe Institute, issue 325, March.

    More about this item

    Keywords

    Fiscal and Tax Competitiveness; Alberta; revenue volatility; resource revenue stabilization fund;

    JEL classification:

    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue

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