Tilbake til søkeresultatene

IS-RUST-EONR-statsvitenskap

Preserving Wealth Over Time? The Challenge of Time Consistency to the Norwegian Government Pension Fund Global and Implications for Climate

Tildelt: kr 0,10 mill.

In response to the growing wealth generated by off-shore exploitation of gas and oil, the Norwegian government provided for the foundation of one of the world's largest sovereign wealth funds and Europe's largest equity owner. The basic task of the inter national part of the fund, invested solely outside Norway, is to provide additional wealth to the Norwegian people for the period following the offshore depletion of fossil fuels. It is to be invested for "many generations." This wealth could, however, alternatively be used in larger proportions for present rather than for future generations. Therefore, the central question arises whether Norwegian policy towards the Norwegian Government Pension Fund Global ("the fund") could fall prey to the challeng e of time inconsistency, i.e., a government policy announcing perpetuity in building wealth while actually depleting it in subsequent periods. Making practical use of the flexibility provisions of the fund?s "Action Rule" lends credibility to such concer ns. The first goal of the proposed research is to derive the design elements for time-consistent decision-making of the fund. Subsequently, the second goal is to explore, how such design elements could be applied to manage climate mitigation policies in the long run. The E.ON Ruhrgas Fellowship in Political Science and the University of Oslo as host would provide the ideal combination to execute such research.

Budsjettformål:

IS-RUST-EONR-statsvitenskap