Analyzing the Effect of Natural Resources Perpetuity Rule on Oil and Gas Revenue Allocation: A Dynamic General Equilibrium Approach

Haqiqi, Iman; Aqanazari, Hasan; sharzei, gholamali

Volume 4, Issue 11 (3-2013) jemr 2013, 4(11): 49-76 | Back to browse issues page

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Haqiqi I, Aqanazari H, sharzei G. Analyzing the Effect of Natural Resources Perpetuity Rule on Oil and Gas Revenue Allocation: A Dynamic General Equilibrium Approach. jemr 2013; 4 (11) :49-76
URL: http://jemr.khu.ac.ir/article-1-590-en.html

Analyzing the Effect of Natural Resources Perpetuity Rule on Oil and Gas Revenue Allocation: A Dynamic General Equilibrium Approach

Iman Haqiqi ^*

¹, Hasan Aqanazari²

, Gholamali Sharzei³

1- University of Economic Sciences , haqiqi@ses.ac.ir
2- Hawzeh University Research Institute
3- University of Tehran

Abstract: (10629 Views)

The purpose of this paper is to introduce the “Natural Resources Perpetuity Rule” in the allocation of resources revenue. We also analyzed the potential impacts of implementing this rule on oil and gas revenues in Iran. To do so, we employed a Computable General Equilibrium Model which is calibrated based on 2010 Micro Consistent Matrix. We assumed an open economy with different sectors such as oil and gas, public services and other activities. Assuming exhaustibility, we measure the impact of different saving rates from Resources Revenue (SR) on welfare, size of public sector, activity levels and exports. We found that the more the SR, the more the welfare loss in first years, the higher the long-run welfare path, the more the non-oil export and the less the size of public sector.

Keywords: Exhaustible Resources, Intergenerational Justice, Size of Public Sector, Computable General Equilibrium.

Full-Text [PDF 1097 kb] (2321 Downloads)

Type of Study: Applicable | Subject: انرژی، منابع و محیط زیست
Received: 2012/11/14 | Accepted: 2013/08/5 | Published: 2013/08/5