When gold turns to sand : A review of the challenges for fossil fuel rich states posed by climate policy
(2021) In IMES/EESS- Abstract
- Petrostates face an unprecedented crisis as oil and gas revenues, on which their economies and states are built upon, are set to diminish rapidly the coming 20 years. The decline in revenues is an effect of the adopted climate policies in the major oil consuming countries that, together with a strong development of renewable energy, reduces the future demand for oil and gas. The challenges that this change create are not only the financial losses but equally important are political and institutional challenges. The dependence on oil and gas have formed both the goverance and the economic structures and thus neglected alternative developments that could have fostered a diverse and competitvie economy.
Petrostates need quickly to... (More) - Petrostates face an unprecedented crisis as oil and gas revenues, on which their economies and states are built upon, are set to diminish rapidly the coming 20 years. The decline in revenues is an effect of the adopted climate policies in the major oil consuming countries that, together with a strong development of renewable energy, reduces the future demand for oil and gas. The challenges that this change create are not only the financial losses but equally important are political and institutional challenges. The dependence on oil and gas have formed both the goverance and the economic structures and thus neglected alternative developments that could have fostered a diverse and competitvie economy.
Petrostates need quickly to adopt green industrial polices to diversify their economies. A few petrostates have started to prepare for a future beyond oil and gas. These diversification strategies can be grouped into either diversification of existing industrial structures, or a developmental strategy to diversify the whole economy to become more robust and innovative. The effectiveness of these diversification ambitions is still unclear. The political changes needed are first to reduce the abundant consumption subsides to fossil energy. This is not easy as this is part of the social contract of a petrostate. In the longer-term, an institutional upgrading is needed to create the right domestic incentives for developing a diverse and competitive economy.
Several areas needs more and deeper understanding in order to formulate effective responses. More in-depth knowledge of the main petrostates, and how the political economy and state model is evolving, is needed. The geopolitical dimension of this transition cannot be understated and requires further efforts.
(Less) - Abstract (Swedish)
- Petrostates face an unprecedented crisis as oil and gas revenues, on which their economies and states are built upon, are set to diminish rapidly the coming 20 years. The decline in revenues is an effect of the adopted climate policies in the major oil consuming countries that, together with a strong development of renewable energy, reduces the future demand for oil and gas. The challenges that this change create are not only the financial losses but equally important are political and institutional challenges. The dependence on oil and gas have formed both the goverance and the economic structures and thus neglected alternative developments that could have fostered a diverse and competitvie economy.
Petrostates need quickly to... (More) - Petrostates face an unprecedented crisis as oil and gas revenues, on which their economies and states are built upon, are set to diminish rapidly the coming 20 years. The decline in revenues is an effect of the adopted climate policies in the major oil consuming countries that, together with a strong development of renewable energy, reduces the future demand for oil and gas. The challenges that this change create are not only the financial losses but equally important are political and institutional challenges. The dependence on oil and gas have formed both the goverance and the economic structures and thus neglected alternative developments that could have fostered a diverse and competitvie economy.
Petrostates need quickly to adopt green industrial polices to diversify their economies. A few petrostates have started to prepare for a future beyond oil and gas. These diversification strategies can be grouped into either diversification of existing industrial structures, or a developmental strategy to diversify the whole economy to become more robust and innovative. The effectiveness of these diversification ambitions is still unclear. The political changes needed are first to reduce the abundant consumption subsides to fossil energy. This is not easy as this is part of the social contract of a petrostate. In the longer-term, an institutional upgrading is needed to create the right domestic incentives for developing a diverse and competitive economy.
Several areas needs more and deeper understanding in order to formulate effective responses. More in-depth knowledge of the main petrostates, and how the political economy and state model is evolving, is needed. The geopolitical dimension of this transition cannot be understated and requires further efforts.
(Less)
Please use this url to cite or link to this publication:
https://lup.lub.lu.se/record/3d3eada2-79c1-4937-a859-bab8df417147
- author
- Åhman, Max LU
- organization
- alternative title
- När guldet blir till sand : En översikt över utmaningarna som klimatpolitiken innebär för fossilrika stater
- publishing date
- 2021-06-09
- type
- Book/Report
- publication status
- published
- subject
- in
- IMES/EESS
- issue
- 124
- pages
- 48 pages
- publisher
- Miljö- och energisystem, LTH, Lunds universitet
- ISBN
- 978-91-86961-50-3
- DOI
- 10.13140/RG.2.2.33001.21600
- language
- English
- LU publication?
- yes
- id
- 3d3eada2-79c1-4937-a859-bab8df417147
- date added to LUP
- 2021-06-09 11:21:43
- date last changed
- 2021-10-22 10:30:35
@techreport{3d3eada2-79c1-4937-a859-bab8df417147,
abstract = {{Petrostates face an unprecedented crisis as oil and gas revenues, on which their economies and states are built upon, are set to diminish rapidly the coming 20 years. The decline in revenues is an effect of the adopted climate policies in the major oil consuming countries that, together with a strong development of renewable energy, reduces the future demand for oil and gas. The challenges that this change create are not only the financial losses but equally important are political and institutional challenges. The dependence on oil and gas have formed both the goverance and the economic structures and thus neglected alternative developments that could have fostered a diverse and competitvie economy.<br/><br/>Petrostates need quickly to adopt green industrial polices to diversify their economies. A few petrostates have started to prepare for a future beyond oil and gas. These diversification strategies can be grouped into either diversification of existing industrial structures, or a developmental strategy to diversify the whole economy to become more robust and innovative. The effectiveness of these diversification ambitions is still unclear. The political changes needed are first to reduce the abundant consumption subsides to fossil energy. This is not easy as this is part of the social contract of a petrostate. In the longer-term, an institutional upgrading is needed to create the right domestic incentives for developing a diverse and competitive economy.<br/><br/>Several areas needs more and deeper understanding in order to formulate effective responses. More in-depth knowledge of the main petrostates, and how the political economy and state model is evolving, is needed. The geopolitical dimension of this transition cannot be understated and requires further efforts.<br/>}},
author = {{Åhman, Max}},
institution = {{Miljö- och energisystem, LTH, Lunds universitet}},
isbn = {{978-91-86961-50-3}},
language = {{eng}},
month = {{06}},
number = {{124}},
series = {{IMES/EESS}},
title = {{When gold turns to sand : A review of the challenges for fossil fuel rich states posed by climate policy}},
url = {{https://lup.lub.lu.se/search/files/98992840/IMES_EESS_Report_No._124_tillg_nglighetsanpassad.pdf}},
doi = {{10.13140/RG.2.2.33001.21600}},
year = {{2021}},
}