IDEAS home Printed from https://ideas.repec.org/a/bla/manchs/v88y2020i1p156-210.html
   My bibliography  Save this article

Causal Effects of PetroCaribe on Sustainable Development: A Synthetic Control Analysis

Author

Listed:
  • Acel Jardón
  • Onno Kuik
  • Richard S.J. Tol

Abstract

We examine the causal effects of the energy subsidy programme PetroCaribe in the three dimensions of sustainable development: economic, social and environmental. We use the synthetic control method to construct a counterfactual and compare it to the outcomes of the beneficiary countries and thus estimate the magnitude and direction of the PetroCaribe effect. PetroCaribe had a positive effect on economic growth in most of the beneficiary countries; however, this economic boost was not followed by an improvement in social development. Environmentally, PetroCaribe did not negatively or positively impact the environmental quality of the member countries, in the sense that we do not find a significant effect on the trend of CO2 emissions per capita.

Suggested Citation

  • Acel Jardón & Onno Kuik & Richard S.J. Tol, 2020. "Causal Effects of PetroCaribe on Sustainable Development: A Synthetic Control Analysis," Manchester School, University of Manchester, vol. 88(1), pages 156-210, January.
  • Handle: RePEc:bla:manchs:v:88:y:2020:i:1:p:156-210
    DOI: 10.1111/manc.12275
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/manc.12275
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. repec:cii:cepiie:2014-q4-140-50 is not listed on IDEAS
    2. Laurent Gobillon & Thierry Magnac, 2016. "Regional Policy Evaluation: Interactive Fixed Effects and Synthetic Controls," The Review of Economics and Statistics, MIT Press, vol. 98(3), pages 535-551, July.
    3. David Coady & Ian W.H. Parry & Louis Sears & Baoping Shang, 2015. "How Large Are Global Energy Subsidies?," IMF Working Papers 15/105, International Monetary Fund.
    4. Vincenzo Bove & Leandro Eliay & Ron P Smith, 2014. "The relationship between panel and synthetic control estimators of the effect of civil war," BCAM Working Papers 1406, Birkbeck Centre for Applied Macroeconomics.
    5. Ferman, Bruno & Pinto, Cristine Campos de Xavier & Possebom, Vítor Augusto, 2016. "Cherry picking with synthetic controls," Textos para discussão 420, FGV EESP - Escola de Economia de São Paulo, Fundação Getulio Vargas (Brazil).
    6. Alberto Abadie & Alexis Diamond & Jens Hainmueller, 2015. "Comparative Politics and the Synthetic Control Method," American Journal of Political Science, John Wiley & Sons, vol. 59(2), pages 495-510, February.
    7. Gabriel Di Bella & Lawrence Norton & Joseph Ntamatungiro & Sumiko Ogawa & Issouf Samaké & Marika Santoro, 2015. "Energy Subsidies in Latin America and the Caribbean; Stocktaking and Policy Challenges," IMF Working Papers 15/30, International Monetary Fund.
    8. David Coady & Ian Parry & Louis Sears & Baoping Shang, 2016. "How Large are Global Energy Subsidies?," CESifo Working Paper Series 5814, CESifo Group Munich.
    9. Andreas Billmeier & Tommaso Nannicini, 2013. "Assessing Economic Liberalization Episodes: A Synthetic Control Approach," The Review of Economics and Statistics, MIT Press, vol. 95(3), pages 983-1001, July.
    10. Jean-Marc Burniaux & Jean Chateau, 2014. "Greenhouse gases mitigation potential and economic efficiency of phasing-out fossil fuel subsidies," International Economics, CEPII research center, issue 140, pages 71-88.
    11. repec:cii:cepiei:2014-q4-140-5 is not listed on IDEAS
    12. Abadie, Alberto & Diamond, Alexis & Hainmueller, Jens, 2010. "Synthetic Control Methods for Comparative Case Studies: Estimating the Effect of California’s Tobacco Control Program," Journal of the American Statistical Association, American Statistical Association, vol. 105(490), pages 493-505.
    Full references (including those not matched with items on IDEAS)

    More about this item

    JEL classification:

    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:manchs:v:88:y:2020:i:1:p:156-210. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley Content Delivery). General contact details of provider: http://edirc.repec.org/data/semanuk.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.