Article ID Journal Published Year Pages File Type
10483881 Resource and Energy Economics 2005 22 Pages PDF
Abstract
In this paper, we analyze the question of membership in a non-renewable resource cartel, with specific application to OPEC. One would expect the benefits of cartel membership to be positively related to the size of remaining reserves, while domestic petroleum consumption should be negatively related to membership if countries care about consumer interests. Our econometric analysis indicates that larger reserves and lower consumption are positively associated with OPEC membership. On the other hand, membership does not appear to be systematically related to countries' religious makeup. Our regressions correctly predict membership for the vast majority of oil-producing countries.
Related Topics
Physical Sciences and Engineering Energy Energy (General)
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