IDEAS home Printed from https://ideas.repec.org/a/ids/ijgeni/v36y2013i1p42-60.html
   My bibliography  Save this article

Trends and trade-offs in petroleum tax design

Author

Listed:
  • Petter Osmundsen
  • Kjell LøvÃ¥s

Abstract

How should tax systems be designed to account for the characteristics of the government, the oil companies and the projects in order to maximise welfare for the country's inhabitants? How should vital government characteristics reflected in parameters such as impatience to obtain tax revenue - the discount rate - and the willingness and ability to carry risk be accounted for in tax design? These basic issues in petroleum tax design are discussed by means of a tax model for a discretionary licensing regime (Norway) and a production sharing agreement regime (Angola). The analysis covers the entire life cycle of a typical petroleum project, i.e., including the exploration decision. We discuss the trade-off between progressivity on the one hand and the incentive for the oil companies and the host government to carry risk and investment on the other. Thus, we provide basic elements in a state contingent tax design. The paper also surveys trends in petroleum taxation, and discusses how tax elements vary over the business cycle.

Suggested Citation

  • Petter Osmundsen & Kjell LøvÃ¥s, 2013. "Trends and trade-offs in petroleum tax design," International Journal of Global Energy Issues, Inderscience Enterprises Ltd, vol. 36(1), pages 42-60.
    • Handle: RePEc:ids:ijgeni:v:36:y:2013:i:1:p:42-60
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=55940
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:ijgeni:v:36:y:2013:i:1:p:42-60. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=13 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.