The application of distributive justice to energy taxation utilising sovereign wealth funds

The energy sector is characterized by inequality and this is part due to the lack of distributive justice applied to energy resource tax revenue. This paper advances one solution to this problem which is for such countries to establish a Sovereign Wealth Fund. There is limited literature on ensuring that distributive justice is a key policy goal of energy taxation and this research aims to contribute to that literature as well as the emerging literature on Sovereign Wealth Funds. Too often as identified in the research, energy taxation policy is developed in isolation and a more holistic perspective is needed which incorporates the entire tax system. A focus on distributive justice as an over-arching energy taxation policy goal is particularly important as a retention of the current status quo will continue to see countries lose the majority of the benefits of their own energy resources to foreign markets and consumers. A Sovereign Wealth Fund, at its core a legal construct with a financial purpose can not only contribute to increased distributive justice but can also ensure increased accountability, transparency and governance in their energy sector.