Had such an analysis of energy rents been available, the nature of the budgetary debates since 1993 would most certainly have led to different outcomes. This study does not suggest that Alberta have the same rate of energy rent collection as other jurisdictions. Rather, Albertans need to understand their economy and fiscal environment relative to others in order to make more informed decisions. This study represents a starting point and an opportunity for all resource-based economies to conduct such analysis making it publicly available. After all, these are public resources or assets whose benefits from development belong to all Albertans.
Economic rent is thus the net revenues generated from the production of oil and gas.
Royalties, fees and other taxes are used by government to collect energy rents from the producer, normally industry. In practice, however, governments seek a balance between maximizing rent collection and the objectives of economic development, investment and a fair tax regime for industry. Footnotes 1 Unlike Alaska and Norway, Alberta's public accounts provide no information on corporate income taxes paid to the province or federal government by the Alberta petroleum industry. For purposes of benchmarking Alberta with Norway and Alaska, it was necessary to use industry estimates of corporate income taxes paid. Historical analysis excludes the corporate income tax figures.