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North Sea Oil and Genuine Saving in the Scottish Economy

Author

Listed:
  • Greg Bremner

    (Dundee Business School, University of Abertay Dundee)

  • Rod Cross

    (Department of Economics, University of Strathclyde)

Abstract

The World Bank has published estimates of sustainability of consumption paths by adjusting saving rates to take account of the depletion of non-renewable resources. During the period of North Sea oil production Scotland has been in a fiscal union with the rest of the UK. The present paper adjusts the World Bank data to produce separate genuine saving estimates for Scotland and the rest of the UK for 1970-2009, based on a 'derivation' principle for oil revenues. The calculations indicate that Scotland has had a negative genuine saving rate for most of the period of exploitation of North Sea oil resources, with genuine saving being positive in the rest of the UK during this period.

Suggested Citation

  • Greg Bremner & Rod Cross, 2012. "North Sea Oil and Genuine Saving in the Scottish Economy," Working Papers 1210, University of Strathclyde Business School, Department of Economics.
    • Handle: RePEc:str:wpaper:1210
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Genuine savings; Adjusted net savings; North Sea oil; Derivation principle;
    All these keywords.

    JEL classification:

    • Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development
    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures

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