Estimating the Value of Oil Capital in a Small Open Economy: the Venezuela’s Example
Data
01.01.2003
01.01.2003
Autori
Sara Aniyar
Parole chiave:
Venezuela,Oil Capital,Capital Gains,Exploration Costs,Property Rights
Venezuela,Oil Capital,Capital Gains,Exploration Costs,Property Rights
Publisher
Climate Change and Sustainable Development
Climate Change and Sustainable Development
Editor
Carlo Carraro
Carlo Carraro
The paper focuses in the calculation of the oil capital value in a small open economy depending on oil rents. The Venezuelan case is used as an example. In valuing the oil capital, two issues are recall and discuss: how should the exploration costs and the capital gains be treated? It is shown that the estimations vary significantly depending on which set of assumptions are made about the way to account for them and the assumptions made about how the economy functions. It is argued that during the studied period the value of the Venezuelan stock of oil capital has increased, and it has done so faster than the population.