The Natural Resources Trap: Private Investment without Public Commitment

The Natural Resources Trap: Private Investment without Public Commitment

by William Hogan
     
 

ISBN-10: 0262013797

ISBN-13: 9780262013796

Pub. Date: 06/30/2010

Publisher: MIT Press

Volatility in commodity prices has been accompanied by perpetual renegotiation of contracts between private investors in natural resource production and the governments of states with mineral and energy wealth. When prices skyrocket,governments want a larger share of revenues, sometimes to the point of nationalization or expropriation; when prices fall, larger

Overview

Volatility in commodity prices has been accompanied by perpetual renegotiation of contracts between private investors in natural resource production and the governments of states with mineral and energy wealth. When prices skyrocket,governments want a larger share of revenues, sometimes to the point of nationalization or expropriation; when prices fall, larger state participation becomes a burden and the private sector is called back in. Recent and newsworthy changes in the price of oil (which fell from an all-time high of $147 in mid-2008 to $40 by year's end) are notable for their speed and the steepness of their rise and fall, but the up-and-down pattern itself is not unusual. If the unpredictability of commodity prices is so predictable, why do contracts not allow for this with mechanisms that would provide a more stable commercial framework? In The Natural Resources Trap, top scholars address this question in terms of both theory and practice. Theoretical contributions range across a number of fields, from contract theory to public finance, and treat topics that include taxation,royalties, and expropriation cycles. Case studies examine experiences in the U.K.,Bolivia, Argentina, Venezuela, and other parts of the world. Contributors: Philippe Aghion, George-Marios Angeletos, Fernando Candia Castillo, Rafael Di Tella, Juan Dubra, Eduardo Engel, Ramón Espinasa, Ronald Fischer, Jeffrey Frankel, Nicolás Gadano, Dieter Helm, William Hogan, Robert MacCulloch, Osmel Manzano, Francisco Monaldi, Bijan Mossavar-Rahmani, Erich Muehlegger, Fernando H. Navajas, Robert Pindyck, Lucía Quesada, Roberto Rigobon, Eduardo S. Schwartz, Federico Sturzenegger,Lawrence Summers, Laurence Tai, Michael Tomz, Anders B. Trolle, Louis Wells, Nils Wernerfelt, Mark L. J. Wright, Richard Zeckhauser, Jeromin Zettelmeyer

William Hogan is Raymond Plank Professor of Global Energy Policy at Harvard's Kennedy School of Government.

Product Details

ISBN-13:
9780262013796
Publisher:
MIT Press
Publication date:
06/30/2010
Pages:
536
Sales rank:
1,156,783
Product dimensions:
6.30(w) x 9.10(h) x 1.40(d)
Age Range:
18 Years

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