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Decarbonization and inequality from the supply side: mining and education in Peru

Osmel Manzano and Daniela Valdivia

Chapter 8 in Elgar Companion on Inequality and Natural Resources, 2026, pp 158-184 from Edward Elgar Publishing

Abstract: This chapter examines the intersection of decarbonization and inequality through the lens of mining and education in Peru. It investigates how mining activities and the redistribution of mining revenues via mechanisms, such as the canon minero and royalties, influence educational outcomes and inequality. Previous work has found that there are some mixed effects of becoming a mining area and from the 2011 mining tax reform on student performance. In this chapter, we extend previous work and use quantile regressions and natural experiments to measure distributive impacts. We find that distributive effects are primarily concentrated within regions transitioning into mining production, often disadvantaging lower-performing students. In addition, mine proximity has distributive impacts favorable to those students. The analysis suggests that the impact of mining on inequality is less about revenue-sharing mechanisms and more about underlying drivers of inequality. Therefore, policy decisions should focus on these factors and not on how mining revenue is shared.

Keywords: Peru; Mining; Revenue Sharing; Education; Inequality (search for similar items in EconPapers)
Date: 2026
ISBN: 9781035327362
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