Energy Prices and Alberta Government Revenue Volatility

28 Pages Posted: 4 Dec 2010

See all articles by Stuart Landon

Stuart Landon

University of Alberta - Department of Economics

Constance E. Smith

University of Alberta - Department of Economics

Date Written: November 4, 2010

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.

Keywords: Fiscal and Tax Competitiveness, Alberta, Revenue Volatility, Resource Revenue Stabilization Fund

JEL Classification: Q43, Q48, E32, H71

Suggested Citation

Landon, Stuart and Smith, Constance E., Energy Prices and Alberta Government Revenue Volatility (November 4, 2010). C.D. Howe Institute Commentary, No. 13, November 2010, Available at SSRN: https://ssrn.com/abstract=1719156

Stuart Landon (Contact Author)

University of Alberta - Department of Economics ( email )

Tory 8-14
Edmonton T6G 2H4, Alberta T6G 2H4
Canada

Constance E. Smith

University of Alberta - Department of Economics ( email )

Tory. HM 8-14
Edmonton T6G 2H4, Alberta
Canada
780-492-5940 (Phone)
780-492-3300 (Fax)

HOME PAGE: http://https://uofa.ualberta.ca/arts/about/people-collection/constance-smith

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