Energy Prices and Alberta Government Revenue Volatility
28 Pages Posted: 4 Dec 2010
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: Suggested Citation
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