Funds from non-renewable energy resources: Policy lessons from Alaska and Alberta

We document the use of energy natural resource funds in Alaska and Alberta and analyze theirs characteristics for further implementation in resource-rich countries. Such funds allow dealing theoretically with intergenerational equity issues, corruption, and more general institutional problems. The performance of both funds is very different, depending on the management and composition choices but some policy lessons can be drawn from these two examples. Importantly, the role of a public dividend policy is highlighted as a way to bypass corrupted institutions and to enhance quality of life for poorest people. We also emphasize the need to deal with inflation to make the fund sustainable.