Ethics, resource rent, environment and petroleum policy: the case of a small open economy

This paper contributes to the understanding of how the environment, ethics, values, and historical contingencies shape public policy. It explains the accomplishment of petroleum resource management in the small open economy of Norway. The study is conducted by mapping policy decisions and the arguments behind them regarding environmental and ethical issues. This is done by studying available governmental and parliamentary papers along with statements from politicians and central governmental officials. The paper also seeks to illuminate some of the decisions by quantitative measures. The paper firstly describes a model of Ricardian resource rent. Secondly, it investigates the set of values that were in place before the petroleum production started in the 1970s, as described in public documents. An important argument was to build a “qualitatively better society” for the benefit of the people. Thirdly, it traces the historical roots of these values by examining historical sources. The main findings are that success lies in understanding the ethics behind the environmental resource rent harvesting of this non-renewable natural resource. The paper concludes that the focus on the natural environment and resource rent management can be attributed to popular values built on historical traditions. According to them, the state and the trust between the state and its citizens played key roles in shaping the policy. The careful policy can be illustrated by the fact that Norway has managed to build one of the largest sovereign funds in the world worth USD 1,200 billion for use by future generations. Only 3% of its value, significantly less than its historical net profit, should be used annually.publishedVersio

Public policy, resource rent and ethics: The case of the Norwegian petroleum industry

The present paper seeks to explain how ethics and values in public policy can be result of different historical contingencies. Specifically, it explains the accomplishment of petroleum resource management in Norway. The main argument is that the success of this policy is an understanding of the ethics behind harvesting the resource rent of this non-renewable natural resource. To support the argument, the paper firstly describes a model of Recardian resource rent. Secondly, it investigates the set of values that were in place before the petroleum production started in the 1970s, as described in the influential white paper, “The role of petroleum activities in the Norwegian Society,” published in 1974. In the white paper, the government discussed the future opportunities, challenges, and responsibilities associated with the oil industry and how this would transform society. An important part of the white paper revealed the main ethical vision of the government, i.e., to build a “qualitatively better society” for the benefit of the people. Thirdly, the paper traces the historical roots of these values

Wages, Work, and the Catholic Social Teaching

The Catholic Social Teaching is a rich and relevant source for studying contemporary problems in society. In this paper, I investigate the question about equal pay in light of the social teaching. During the last decade, there has been an increasing interest in equal pay and related concepts like universal basic income. By equal pay we mean that everyone in society receives the same remuneration regardless of the type of work, level of effort, or unemployed or not. From an economic point of view, there are large negative incentive effects with such an arrangement. The reason is that the principle of ‘equal pay for all’ breaks the relationship between the workers’ effort and the payment associated with the effort. Furthermore, neo-classical economics would argue that there is no incentive to work if there is no financial payoff compared to not working. Also from a Catholic social teaching viewpoint, there is no support for an ‘equal pay for all’ arrangement. However, the social teaching sheds important light on the meaning of work and the right to a living wage

Stock earnings and bond yields in the US 1871–2017 : The story of a changing relationship

publishedVersio

Stock earnings and bond yields in the US 1871–2017 : The story of a changing relationship

publishedVersio

Ethics, resource rent, environment and petroleum policy: the case of a small open economy

This paper contributes to the understanding of how the environment, ethics, values, and historical contingencies shape public policy. It explains the accomplishment of petroleum resource management in the small open economy of Norway. The study is conducted by mapping policy decisions and the arguments behind them regarding environmental and ethical issues. This is done by studying available governmental and parliamentary papers along with statements from politicians and central governmental officials. The paper also seeks to illuminate some of the decisions by quantitative measures. The paper firstly describes a model of Ricardian resource rent. Secondly, it investigates the set of values that were in place before the petroleum production started in the 1970s, as described in public documents. An important argument was to build a “qualitatively better society” for the benefit of the people. Thirdly, it traces the historical roots of these values by examining historical sources. The main findings are that success lies in understanding the ethics behind the environmental resource rent harvesting of this non-renewable natural resource. The paper concludes that the focus on the natural environment and resource rent management can be attributed to popular values built on historical traditions. According to them, the state and the trust between the state and its citizens played key roles in shaping the policy. The careful policy can be illustrated by the fact that Norway has managed to build one of the largest sovereign funds in the world worth USD 1,200 billion for use by future generations. Only 3% of its value, significantly less than its historical net profit, should be used annually

Public policy, resource rent and ethics: The case of the Norwegian petroleum industry

The present paper seeks to explain how ethics and values in public policy can be result of different historical contingencies. Specifically, it explains the accomplishment of petroleum resource management in Norway. The main argument is that the success of this policy is an understanding of the ethics behind harvesting the resource rent of this non-renewable natural resource. To support the argument, the paper firstly describes a model of Recardian resource rent. Secondly, it investigates the set of values that were in place before the petroleum production started in the 1970s, as described in the influential white paper, “The role of petroleum activities in the Norwegian Society,” published in 1974. In the white paper, the government discussed the future opportunities, challenges, and responsibilities associated with the oil industry and how this would transform society. An important part of the white paper revealed the main ethical vision of the government, i.e., to build a “qualitatively better society” for the benefit of the people. Thirdly, the paper traces the historical roots of these values