(Routledge Explorations in Environmental Economics) 1st Edition
by Emre Üşenmez (Author)
Since its inception some 40 years
ago, petroleum-specific taxation in the UK has been subject to numerous
modifications. Often these modifications were brought into place not
only to sufficiently incentivise the investors but also to capture a
fair share for the government. However, it is evident from the frequency
of changes that finding the right balance between these two aims is no
easy matter. Such a balance, and the consequent fiscal stability, is
necessary for the long-term relationship between the parties to endure
to their mutual benefit. Still, it does not take much for one or other
party to feel that they are out of balance. As a consequence, one party
feels that the other party is taking an undue proportion of the value
generated and that they are losing out.
Yet achieving that
balance and fiscal stability is possible. To understand this
possibility, this book first clarifies what is meant by sufficient
incentivisation and fair share before developing a new fiscal system
that manages this balance and stability. Such clarification yields
objective criteria against which to assess not only the existing regime,
but also the newly proposed regime. This approach is further
complemented by the critical analysis of the fiscal legislative
framework and the evaluation of the legal positions of specific
contractual elements and mechanisms found within that framework. This
latter analysis is important in order to reduce the legal uncertainty
such elements may create, which can otherwise lead to further reactive
amendments and revisions to the fiscal regime in the future.
