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Income Opportunities and Sea Piracy in Indonesia: Evidence from Satellite Data

Author

Listed:
  • Sebastian Axbard

Abstract

The effect of climatic variation on conflict and crime is well established, but less is known about the mechanism through which this effect operates. This study contributes to the literature by exploiting a new source of exogenous variation in climate to study the effect of fishermen's income opportunities on sea piracy. Using satellite data to construct a monthly measure of local fishing conditions it is found that better income opportunities reduce piracy. A wide range of approaches are employed to ensure that these effects are driven by income opportunities rather than other mechanisms through which climate could affect piracy. (JEL D74, J31, K42, O13, O17, Q22, Q54)

Suggested Citation

  • Sebastian Axbard, 2016. "Income Opportunities and Sea Piracy in Indonesia: Evidence from Satellite Data," American Economic Journal: Applied Economics, American Economic Association, vol. 8(2), pages 154-194, April.
    • Handle: RePEc:aea:aejapp:v:8:y:2016:i:2:p:154-94
    Note: DOI: 10.1257/app.20140404
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    More about this item

    JEL classification:

    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • Q22 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Fishery
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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