Ghana Petroleum Fund Experiment. ´Can a Petroleum Fund help Ghana manage its petroleum revenue (wealth)? An Experimental Inquiry´
MetadataShow full item record
Ghana starts petroleum production and export business in the third quarter of 2010. The management of the petroleum tax revenue is seen as timely fiscal policy decisions by the government and its partners. These policy decisions could either lead to a “blessing”; managing the revenue well or a “curse”; mismanaging the revenue, if right decisions are not taken. Studies also show that people commonly misperceive the dynamics of a system when making decisions, resulting to poor outcomes of their decisions. The following hypotheses were made: first, policy makers in Ghana will mismanage its petroleum tax revenue through a Fund- ‘curse’. Second, policy makers will misperceive the dynamics of a petroleum economy while making spending decisions. Third, misperceptions lead to a cyclical development of the total capacity utilisation. A system dynamics model-based experiment was carried out in Ghana to test these hypotheses. The model behind the experiment captured a simple macroeconomic dynamics of a petroleum economy, which shares some essential features of Ghana’s economy. The experiment was supported with administering of questionnaire, interviews and field data. Selected policy makers from the Bank of Ghana, Ministry of Finance and Economic Planning and the Parliamentary Committee on Finance formed the subjects of the experiments. The experimental output indicates a potential for policy makers in Ghana managing its petroleum tax revenue well through a Petroleum Fund. Most policy makers seemed to have based their spending decisions on the Fund inflows, leading to misperceptions of the dynamics of the petroleum economy. This created a cyclical development of the total capacity utilisation and other economic indicators. It is recommended that, a Petroleum Fund is established in Ghana with a strong fiscal policy and a discipline commitment attached to its management.
PublisherThe University of Bergen
SubjectGhana Petroleum Fund; Petroleum Tax Revenue; System dynamics; Public Spending; Total Capacity Utilisation; Misperceptions
Showing items related by title, author, creator and subject.
Legal Regulatory Framework for the Sustainable Extraction of Australian Offshore Petroleum Resources. A Critical Functional Analysis Hunter, Tina (The University of Bergen, 2010-09-17)The sustainable development of petroleum resources in Australia forms the study of this thesis. Sustainable development in this thesis is defined as development that meets the needs of the present without compromising the ...
Effect of Erroneous Representation of Location and Orientation of EM Receivers for Monitoring of Submarine Petroleum Reservoirs Seyffarth, Hanne Christine (The University of Bergen, 2009-06-02)The receivers in electromagnetic monitoring should optimally be placed exactly in the same location during every single acquisition. However, for technological and economical reasons, the receivers are currently brought ...
The influence of pipeline wettability and crude oil composition on deposition of gas hydrates during petroleum production Aspenes, Guro (The University of Bergen, 2010-02-05)At specific temperature and pressure conditions, hydrates can sometimes plug production pipelines. It has been shown that some oils contain natural inhibiting compounds (NICs) that prevent hydrate plug formation even though ...