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Can Black Gold Shine? The Effect of Oil Prices on Nighttime Light in Brazil

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  • Gradstein, Mark
  • Klemp, Marc

Abstract

We explore the existence of a local “resource curse†related to Brazil’s oil re-serves. To this end, we examine the effect of changes in international oil prices interacted with measures of oil access on nighttime light – a measure of econom-ic activity – across the country’s localities. We detect no evidence of a resource curse: in fact, better access to oil enhances the positive effect of oil prices on economic activity. Our estimates indicate that a doubling of oil prices causes an average increase in luminosity of some 50 percent more in oil rich than in oil poor states; and 30 percent more, on average, in localities within 100 km dis-tance to the nearest oil field relative to more remote localities.

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  • Gradstein, Mark & Klemp, Marc, 2016. "Can Black Gold Shine? The Effect of Oil Prices on Nighttime Light in Brazil," CEPR Discussion Papers 11686, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:11686
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    Cited by:

    1. Phoebe W. Ishak & Pierre-Guillaume Méon, 2023. "A Resource-Rich Neighbor Is a Misfortune: The Spatial Distribution of the Resource Curse in Brazil," Economic Development and Cultural Change, University of Chicago Press, vol. 71(4), pages 1213-1247.
    2. Michael Jetter & Saskia Mösle & David Stadelmann, 2017. "Landlockedness and Economic Development: Analyzing Subnational Panel Data and Exploring Mechanisms," CESifo Working Paper Series 6733, CESifo.
    3. Gradstein, Mark & Klemp, Marc, 2020. "Natural resource access and local economic growth," European Economic Review, Elsevier, vol. 127(C).
    4. Jetter, Michael & Mösle, Saskia & Stadelmann, David, 2019. "Cursed by no coast: How regional landlockedness affects income within countries," Economics Letters, Elsevier, vol. 181(C), pages 70-73.

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