Energy Prices and Alberta Government Revenue Volatility

Stuart Landon · Constance Smith

17 citations0/0 files storedRePEc: Research Papers in Economics

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Natural Resources and Economic Development Economic and Fiscal Studies Fiscal Policies and Political Economy

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.

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