Fiscal Management in Resource-Rich Countries: Essentials for Economists, Public Finance Professionals, and Policy Makers

Abstract

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The fiscal implications of the low-carbon transition

“…For example, a price-elasticity of -0.3 means that an increase of 6% in the price of a good would lead to a drop of 2% in demand. Most of studies on the price elasticity of fossil fuels focus on gasoline or transport related fuel, but a meta-analysis of studies on price elasticity of all important energy products 14 find an average elasticity between −0.77, and −0.19 in the long term and -0.29 and -0.02 in the short-term. (Labandeira, Labeaga and López-Otero, 2017 [11]).…”

“…This was mainly due to an increase in oil price that led governments regulating end-user price to increase spending to maintain domestic prices constant in order to shield consumers from price spikes. The previous downward trend was driven in part by a reduction of international oil prices and, in part, by the ambitious reforms introduced by several countries, including China, India, Indonesia, and Mexico and several MENA region countries (OECD and IEA, 2019 [14]). 17 The OECD partner countries include: Argentina, Brazil, China, Colombia, India, Indonesia, Russia, and South Africa Note: Support to fossil fuel consumption include direct budgetary transfers and tax expenditure that provide a benefit or preference for fossil fuel consumption and induced transfers resulting from government price controls below reference prices.…”

Evidencia estadística de superciclos en las series de precios de los metales y el petróleo, 1900-2015

“…Dado que ese conocimiento es muy parcial, ello es una fuente esencial de incertidumbre y, por ende, de errores de asignación. De ahí la necesidad de diseñar un régimen para el manejo de la asignación del espacio que se adapte específicamente a situaciones de incertidumbre y que considere choques de ciclo y de tendencia FMI, 2012FMI, y 2015Ossowski y Halland, 2016).…”

Oil Discovery and Macroeconomic Management: The Recent Ghanaian Experience

“…Research on the effectiveness of fiscal rules does not indicate that fiscal discipline follows in a straight line. Ossowski and Halland (2016) It is therefore possible that a country lacking fiscal rules but possessing a commitment to fiscal discipline and good institutions will outperform a country with well-designed fiscal rules but with less commitment to fiscal discipline, less political consensus, and weaker institutions.…”