The lecture explored the role of Azerbaijan's petroleum sector in the country's energy transition, with particular emphasis on economic rent collection and long-term fiscal sustainability.
Professor Kemp and Fumiko Nakamaru discussed Azerbaijan’s approach to capturing economic rents from petroleum resource exploitation, focusing on the institutional mechanisms employed. Particular attention was given to the role of a stabilisation fund in mitigating revenue volatility, and the function of a Permanent Wealth Fund designed to generate a sustainable income stream for future generations. The discussion underscored the importance of preserving the fund’s capital base while deriving permanent income from prudent investment returns, especially in anticipation of eventual resource depletion.