A fund would prevent pollution  Environmental damage is an example of the ‘tragedy of the commons’ where if a resource is not owned by an individual (or is free to all) then it will be overexploited. This is because it is in everyone’s self-interest to use it as much as possible. The result is pollution; politicians and oil companies want to exploit the oil as cheaply as possible so they dump pollution on the local population.  For example, the $19 billion ruling handed down last year by a court in Lago Agrio, a town near Ecuador’s border with Colombia, held Chevron accountable for health and environmental damages resulting from chemical-laden wastewater dumped from 1964 to 1992(1).  Putting oil wealth into a trust fund can help prevent this kind of abuse. There are two reasons for this. First if politicians are not getting an immediate benefit they will be less inclined to overlook pollution and there won’t be money to buy support for drilling and pollution to continue. The second is that since the fund is meant to provide long term benefits and investments one of the things it can be doing is being devoted to cleaning up any pollution that is created thus protecting the future generations.  (1) Joe Carroll, Rebecca Penty &amp; Katia Dmitrieva ” Chevron’s $19 Billion ‘Disaster’ Gets Hearing”, Bloomberg, 29 November 2012,