 |
What
challenges do we face because the Alaska economy is dominated by
a depleting natural resource--oil?
Alaska's significant petroleum
resources have been both a blessing and a challenge. Exploitation of
Cook Inlet and North Slope fields has provided most of the wealth to
support Alaska's entry into statehood and as well as most of its economic
growth through the last decades of the twentieth century. With oil
production now down to half the peak rate, Alaska faces the challenge
of a transition to a post-Prudhoe bay economy without stumbling. Because
of this unique economic structure, development lessons from other places
often don't fit in Alaska. We must look to other resource-rich countries,
to our own past, and to a better understanding of the unique features
of our own NON-RENEWABLE RESOURCE ECONOMY.
Available products are listed
below each project.
|
 |
|
|
Transparency
of Government Accounts |
| |
State and local
government plays a larger role in the economy of Alaska than any other
state. In 2002 the total state budget of $7.4 billion, including federal
grants and the Permanent Fund dividend, supported about 100 thousand
jobs in the state. For a variety of reasons Alaskans have a very limited
understanding of either the sources of funds for this budget or where
the money goes. This lack of understanding makes it difficult to implement
the fiscal reforms necessary to maintain a balanced budget in future
years as oil revenues continue to fall. The product of this study is
a better understanding of how to communicate complicated fiscal information
to the public so that they can make more informed decisions about fiscal
issues important to the economic future of the state. |
| |
|
| |
|
Contact |
Sharman
Haley |
| |
|
Product |
Title |
| |
|
|
|
| |
|
Report |
Understanding
Alaska State Finance: What Every Citizen Wants to Know and How to Convey
that Information Effectively |
| |
|
Appendices |
Appendix
A, Appendix
B |
| |
|
Power
Point |
Understanding
Alaska State Finances |
| |
|
|
|
Economic
Development Lessons from the Past |
| |
Alaskans have been
pursuing economic development at least since the discovery of gold at
the turn of the last century and many lessons about what works and doesn't
and why can be learned by studying the many experiences of the past.
The product of this historical review will be a set of lessons about
Alaska economic development that every practicing Alaskan economic development
specialist should keep in mind. |
| |
|
| |
|
Contact |
Terrence
Cole |
| |
|
Product |
Title |
| |
|
Report |
Blinded
by Riches: The Permanent Funding Problem and the Prudhoe Bay Effect |
| |
|
Research Summary |
Blinded by Riches: The Prudhoe Bay Effect |
| |
|
|
Structure
of the Alaska Economy |
| |
Although the economic
history of Alaska is dominated by cycles of natural resource exploitation,
the state economy today is dependent on oil and the federal government
for about 2/3 of all jobs and income. The combined contribution of the
traditional resource sectors of fishing, timber, mining, and agriculture
is about 1/6 of total economic activity. The product of this study is
a model that gives us a better understanding of the importance of each
basic industry in the structure of the Alaska economy as well as differences
across economic regions in the state. |
| |
|
| |
|
Contact |
Scott
Goldsmith |
| |
|
Product |
Title |
| |
|
Database |
Structural
Overview |
| |
|
Power
Point |
Structural
Overview |
| |
|
|
Resource
Curse |
| |
The OPEC countries,
Norway, Alberta, and other places have, like Alaska, been blessed with
huge petroleum revenue windfalls in the recent past. Curiously, economic
growth in most of these places has lagged behind the average of other
economies and this phenomenon has come to be known as the "Resource
Curse". The product of this study is a report on what the causes
of the "Resource Curse" are, how other places have dealt with
the challenges imposed by sudden economic wealth, and most importantly,
what lessons Alaska can learn from the experiences, and mistakes, of
other places. |
| |
|
| |
|
Contact |
Scott
Goldsmith |
| |
|
Product |
Title |
| |
|
Report |
Sustainable Development and Sustainable Income from
Alaska's Resources |
| |
|
|
Figures for Sustainable Development report |
| |
|
|
Role
of Public Policy in Economic Development |
| |
The question of
the role of the public sector in economic development is unique to Alaska
because the state and federal governments own such a large share of the
natural resources that are the foundation of the economy. At the same
time there are a number of different strategies that are typical of economic
development efforts in other places. The product of this study will be
a review of different economic development strategies, recognizing both
the similarities and differences between the Alaska economy and other
locations. |
| |
|
| |
|
Contact |
Scott
Goldsmith |
| |
|
Product |
Title |
| |
|
Power
Point |
Fostering
Alaska Business Development |
| |
|
|
Influence
of Fiscal Policy on Economic Development |
| |
Economic
development requires a partnership between the private and public sectors
wherein the public sector provides much of the infrastructure necessary
for development as well as many of the services required for businesses
to be successful. The taxes used to collect the revenues to pay for these
services will inevitably have some adverse impact on the profitability
of business operations. Furthermore in Alaska a large share of the tax
base is "missing" due to the large presence of the federal
government in the economy. The necessity of a fair and efficient tax
system that is supportive of economic development efforts is an increasingly
important concern as our petroleum tax base shrinks in relation to our
public needs. The product of this study will be an analysis of the relationship
between different fiscal policies, particularly different tax policies,
and economic development. |
| |
|
Contact |
Larry
Persily |
| |
|
Product |
Title |
|
Economic
Development Through Ownership of Oil & Gas |
| |
This
study reviews petroleum leasing laws and regulations that regulate exploration
development of oil lands.
It also looks closely at policies regarding the state's royalty share of
oil and gas, and other programs that give the state an opportunity to direct "downstream" oil
and gas development. Issues to address include laws that allow the state
to take royalty share in kind or in value, the TAPS tariff structure and
the "quality bank," long-term contracts for royalty oil and gas,
and local hire provisions in leases.
The primary questions the study will evaluate are:
1. What have been the state's development objectives with respect to
oil and gas, and how have these objectives evolved over the years?
2. What specific programs adopted through laws, regulations, and policies
has the state developed to pursue these objectives?
3. Which programs
have been most successful in achieving the objectives, and which were
less successful, and what can we learn from the successes that might
provide insight for other development programs?
Examples of programs or projects to consider include:
1. Instate refineries providing import substitution
2. Cook Inlet natural gas export facilities (Agrium, LNG)
3. Attempts to build export refineries and petrochemical plants
4. Royalty
gas contracts to stabilize Cook Inlet utility markets
5. Royalty gas
sales for North Slope production facilities
6. Use of royayty gas to
promote export North Slope gas pipelines
7. Lease renegotiations that
promote local hire efforts such as the Northstar
8. Exploration incentive
tax credits
|
| |
|
Contact |
Matt
Berman |
| |
|
Report |
Economic
Development Through State Ownership of Oil and Gas: Evaluating Alaska's
Royalty-In-Kind Program |
|
|
Planned |
|
Underway |
|
Completed |
