 Natural Resource SustainabilityOle Bjørn Røste
Chapter Chapter 2 in Norway’s Sovereign Wealth Fund, 2021, pp 19-71 from Springer Abstract: Abstract Deposits of hydrocarbons are a specific type of non-renewable natural resources. Once developed and sold, they are gone. They can be left alone for prospective future development or extracted and converted into financial assets. The more easily extractable parts are developed early. Over time, technological development increases the volume of that category. Oil resource are ‘free’, and extraction highly profitable. An oil industry may thus attract significant resources. Positive income shocks evolve in good times, with needs to save for the future. In Norway, the state has mended individual savings failure through removing income from current budgets and investing it systematically long-term. Throughout the oil age there has been significant savings and investment, till 1998 in domestic infrastructure through public budgets, and later internationally through a large SWF. With erratic hydrocarbon prices, it was risk-reducing not to leave more hydrocarbons untouched. This is underscored both by high investment returns and recent indications of fossil fuel non-sustainability. Date: 2021 There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:spr:nrmchp:978-3-030-74107-5_2 Ordering information: This item can be ordered from DOI: 10.1007/978-3-030-74107-5_2 Access Statistics for this chapter More chapters in Natural Resource Management and Policy from Springer |
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