EconPapers    
Economics at your fingertips  
 

Income inequality and oil resources: Panel evidence from the United States

Edmond Berisha, Carolyn Chisadza, Matthew Clance () and Rangan Gupta ()

Energy Policy, 2021, vol. 159, issue C

Abstract: The resource curse is sometimes associated with poor resource-rich countries. However, using panel evidence from the United States, we find that the resource curse is also prevalent in a wealthy resource-rich country. This study investigates the impact of oil resources on income inequality, with a particular focus on distinguishing between the effects from oil abundance (i.e. production) versus oil dependency (i.e. consumption). We observe contrasting non-monotonic outcomes from oil abundance in comparison to oil dependency. For oil abundance, states with low oil production will have less inequality if they increase oil production, and states with high oil production will have increased income inequality if they increase production. The opposite holds true for oil dependency. The findings suggest several channels of concern. For example, oil-rich states are more vulnerable to rent-seeking behaviour as oil production and oil revenues increase, which can adversely affect the income distribution gap. On the other hand, oil-dependent states are more likely to be affected by commodity price shocks which can increase income inequality.

Keywords: Oil resources; Income inequality; United States JEL Classification: D63; O13; O51 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0301421521004699
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Income Inequality and Oil Resources: Panel Evidence from the United States (2020)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:enepol:v:159:y:2021:i:c:s0301421521004699

DOI: 10.1016/j.enpol.2021.112603

Access Statistics for this article

Energy Policy is currently edited by N. France

More articles in Energy Policy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().

 
Page updated 2023-01-24
Handle: RePEc:eee:enepol:v:159:y:2021:i:c:s0301421521004699