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Energy Prices and Alberta Government Revenue Volatility

Stuart Landon () and Constance Smith ()

C.D. Howe Institute Commentary, 2010, issue 313

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 (search for similar items in EconPapers)
JEL-codes: Q43 Q48 E32 H71 (search for similar items in EconPapers)
Date: 2010
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