State participation and taxation in Norwegian petroleum: Lessons for others?

摘要: Abstract Starting around 1970, Norway's system of state participation and taxation in petroleum had important asymmetries, known as distortionary tax theory. Moreover, rates were tailored to oil price changes. From 1986 onwards this has been reformed gradually into a stable symmetric system, recognized close neutral, inducing companies maximize pre-tax values. But the is costly risky for state. If countries are unable or unwilling bear costs risks, they cannot implement neutral system. Neither did Norway from beginning. In that case country faces trade-offs between risk maximization value revenue. This may be partly circumvented by slowing pace licensing.