Arctic Oil and Public Finance: Norway’s Lofoten Region and Beyond
This study explores potential implications of Arctic oil and gas exploration for public finance, with the Norwegian Lofoten region as a valuation case. A model is calibrated to turn oil and gas resource estimates into projections for investment, production, and net cash flows, which are discounted t...
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Online Access: | http://dx.doi.org/10.5547/01956574.40.3.kmoh https://journals.sagepub.com/doi/pdf/10.5547/01956574.40.3.kmoh |
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crsagepubl:10.5547/01956574.40.3.kmoh 2024-05-12T07:58:52+00:00 Arctic Oil and Public Finance: Norway’s Lofoten Region and Beyond Mohn, Klaus 2019 http://dx.doi.org/10.5547/01956574.40.3.kmoh https://journals.sagepub.com/doi/pdf/10.5547/01956574.40.3.kmoh en eng SAGE Publications https://creativecommons.org/licenses/by/4.0/ The Energy Journal volume 40, issue 3, page 199-226 ISSN 0195-6574 1944-9089 General Energy Economics and Econometrics journal-article 2019 crsagepubl https://doi.org/10.5547/01956574.40.3.kmoh 2024-04-18T08:32:53Z This study explores potential implications of Arctic oil and gas exploration for public finance, with the Norwegian Lofoten region as a valuation case. A model is calibrated to turn oil and gas resource estimates into projections for investment, production, and net cash flows, which are discounted to assess the direct impact for the government budget. With the Norwegian oil fund mechanism and fiscal policy rule, Lofoten oil and gas revenues could add fiscal capacity in the range of 0.1-2.4 per cent of the current government budget, implying a permanent increase in annual government spending (or tax relief) of 24-220 USD per capita. Corresponding implications for other resource-rich countries in the Arctic depend on their resource potential and the relative role of oil and gas in their economy. Article in Journal/Newspaper Arctic Lofoten SAGE Publications Arctic Lofoten The Energy Journal 40 3 199 226 |
institution |
Open Polar |
collection |
SAGE Publications |
op_collection_id |
crsagepubl |
language |
English |
topic |
General Energy Economics and Econometrics |
spellingShingle |
General Energy Economics and Econometrics Mohn, Klaus Arctic Oil and Public Finance: Norway’s Lofoten Region and Beyond |
topic_facet |
General Energy Economics and Econometrics |
description |
This study explores potential implications of Arctic oil and gas exploration for public finance, with the Norwegian Lofoten region as a valuation case. A model is calibrated to turn oil and gas resource estimates into projections for investment, production, and net cash flows, which are discounted to assess the direct impact for the government budget. With the Norwegian oil fund mechanism and fiscal policy rule, Lofoten oil and gas revenues could add fiscal capacity in the range of 0.1-2.4 per cent of the current government budget, implying a permanent increase in annual government spending (or tax relief) of 24-220 USD per capita. Corresponding implications for other resource-rich countries in the Arctic depend on their resource potential and the relative role of oil and gas in their economy. |
format |
Article in Journal/Newspaper |
author |
Mohn, Klaus |
author_facet |
Mohn, Klaus |
author_sort |
Mohn, Klaus |
title |
Arctic Oil and Public Finance: Norway’s Lofoten Region and Beyond |
title_short |
Arctic Oil and Public Finance: Norway’s Lofoten Region and Beyond |
title_full |
Arctic Oil and Public Finance: Norway’s Lofoten Region and Beyond |
title_fullStr |
Arctic Oil and Public Finance: Norway’s Lofoten Region and Beyond |
title_full_unstemmed |
Arctic Oil and Public Finance: Norway’s Lofoten Region and Beyond |
title_sort |
arctic oil and public finance: norway’s lofoten region and beyond |
publisher |
SAGE Publications |
publishDate |
2019 |
url |
http://dx.doi.org/10.5547/01956574.40.3.kmoh https://journals.sagepub.com/doi/pdf/10.5547/01956574.40.3.kmoh |
geographic |
Arctic Lofoten |
geographic_facet |
Arctic Lofoten |
genre |
Arctic Lofoten |
genre_facet |
Arctic Lofoten |
op_source |
The Energy Journal volume 40, issue 3, page 199-226 ISSN 0195-6574 1944-9089 |
op_rights |
https://creativecommons.org/licenses/by/4.0/ |
op_doi |
https://doi.org/10.5547/01956574.40.3.kmoh |
container_title |
The Energy Journal |
container_volume |
40 |
container_issue |
3 |
container_start_page |
199 |
op_container_end_page |
226 |
_version_ |
1798839488935362560 |