Investment neutrality in resource rent taxation – revealed preferences of Norwegian oil & gas companies
This study revisits the academic disagreement on the impact of resource rent tax design on oil and gas companies. The disagreement relates to whether the petroleum special tax on the Norwegian Continental Shelf leads to under- or over-investments. Ideally, to ascertain the degree of investment disto...
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| Format: | Article |
| Language: | English |
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Taylor & Francis Group
2025-12-01
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| Series: | Cogent Business & Management |
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| Online Access: | https://www.tandfonline.com/doi/10.1080/23311975.2025.2450288 |
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| author | Julide Ceren Ahi Atle Blomgren Atle Guttormsen Bård Misund Ragnar Tveterås |
| author_facet | Julide Ceren Ahi Atle Blomgren Atle Guttormsen Bård Misund Ragnar Tveterås |
| author_sort | Julide Ceren Ahi |
| collection | DOAJ |
| description | This study revisits the academic disagreement on the impact of resource rent tax design on oil and gas companies. The disagreement relates to whether the petroleum special tax on the Norwegian Continental Shelf leads to under- or over-investments. Ideally, to ascertain the degree of investment distortion, one would need to conduct an empirical analysis of the private investment decision information of oil and gas companies that is not publicly available. In this study, using a recent major petroleum resource rent tax overhaul as a case study, we adopt an alternative approach and examine information from the industry conveyed by oil and gas companies through the consultation process. If the underinvestment hypothesis is true, then the company should favor a change to a cash flow tax. At the same time, the opposite is true for the hypothesis that the special tax results in overinvestments – companies should be unfavorable towards a tax change. Analyses of oil and gas companies’ responses support the hypothesis that the previous tax regime provided investment disincentives. |
| format | Article |
| id | doaj-art-d18412da02f34e2cbe0e2bde6a8fec6c |
| institution | Kabale University |
| issn | 2331-1975 |
| language | English |
| publishDate | 2025-12-01 |
| publisher | Taylor & Francis Group |
| record_format | Article |
| series | Cogent Business & Management |
| spelling | doaj-art-d18412da02f34e2cbe0e2bde6a8fec6c2025-01-21T13:03:38ZengTaylor & Francis GroupCogent Business & Management2331-19752025-12-0112110.1080/23311975.2025.2450288Investment neutrality in resource rent taxation – revealed preferences of Norwegian oil & gas companiesJulide Ceren Ahi0Atle Blomgren1Atle Guttormsen2Bård Misund3Ragnar Tveterås4NORCE Norwegian Research Institute, Stavanger, NorwayNORCE Norwegian Research Institute, Stavanger, NorwaySchool of Economics and Business, Norwegian University of Life Sciences, Ås, NorwayNORCE Norwegian Research Institute, Stavanger, NorwayUiS School of Business and Law, University of Stavanger, Stavanger, NorwayThis study revisits the academic disagreement on the impact of resource rent tax design on oil and gas companies. The disagreement relates to whether the petroleum special tax on the Norwegian Continental Shelf leads to under- or over-investments. Ideally, to ascertain the degree of investment distortion, one would need to conduct an empirical analysis of the private investment decision information of oil and gas companies that is not publicly available. In this study, using a recent major petroleum resource rent tax overhaul as a case study, we adopt an alternative approach and examine information from the industry conveyed by oil and gas companies through the consultation process. If the underinvestment hypothesis is true, then the company should favor a change to a cash flow tax. At the same time, the opposite is true for the hypothesis that the special tax results in overinvestments – companies should be unfavorable towards a tax change. Analyses of oil and gas companies’ responses support the hypothesis that the previous tax regime provided investment disincentives.https://www.tandfonline.com/doi/10.1080/23311975.2025.2450288Petroleum taxationresource rent taxationoil & gas explorationinvestmentsincentivesEconomics |
| spellingShingle | Julide Ceren Ahi Atle Blomgren Atle Guttormsen Bård Misund Ragnar Tveterås Investment neutrality in resource rent taxation – revealed preferences of Norwegian oil & gas companies Cogent Business & Management Petroleum taxation resource rent taxation oil & gas exploration investments incentives Economics |
| title | Investment neutrality in resource rent taxation – revealed preferences of Norwegian oil & gas companies |
| title_full | Investment neutrality in resource rent taxation – revealed preferences of Norwegian oil & gas companies |
| title_fullStr | Investment neutrality in resource rent taxation – revealed preferences of Norwegian oil & gas companies |
| title_full_unstemmed | Investment neutrality in resource rent taxation – revealed preferences of Norwegian oil & gas companies |
| title_short | Investment neutrality in resource rent taxation – revealed preferences of Norwegian oil & gas companies |
| title_sort | investment neutrality in resource rent taxation revealed preferences of norwegian oil gas companies |
| topic | Petroleum taxation resource rent taxation oil & gas exploration investments incentives Economics |
| url | https://www.tandfonline.com/doi/10.1080/23311975.2025.2450288 |
| work_keys_str_mv | AT julidecerenahi investmentneutralityinresourcerenttaxationrevealedpreferencesofnorwegianoilgascompanies AT atleblomgren investmentneutralityinresourcerenttaxationrevealedpreferencesofnorwegianoilgascompanies AT atleguttormsen investmentneutralityinresourcerenttaxationrevealedpreferencesofnorwegianoilgascompanies AT bardmisund investmentneutralityinresourcerenttaxationrevealedpreferencesofnorwegianoilgascompanies AT ragnartveteras investmentneutralityinresourcerenttaxationrevealedpreferencesofnorwegianoilgascompanies |