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An Antidote to the Resource Curse: The Blessing of Renewable Energy


  • Angeliki N. Menegaki

    (Organismos Georgikon Asfaliseon, Regional Branch of Eastern Macedonia & Thrace, 69100, Komotini, Greece)


This paper empirically examines the validity of the resource curse in Europe and it is the first time renewable energy is inserted in this research context. The study uses panel data with a variety of explanatory variable proxies for investment, openness, rule of law, resource endowments and human capital. It employs a single equation fixed effects model with heteroskedasticity robust covariance and a simultaneous two equation model where renewable energy enters the structural equation as an endogenous variable. The resource curse is confirmed only for crude oil and resource productivity in the single equation model while renewable energy has a positive relationship to growth. In the simultaneous two equation model, countries with high oil production and emissions also have a higher production of renewable energies.

Suggested Citation

  • Angeliki N. Menegaki, 2013. "An Antidote to the Resource Curse: The Blessing of Renewable Energy," International Journal of Energy Economics and Policy, Econjournals, vol. 3(4), pages 321-332.
  • Handle: RePEc:eco:journ2:2013-04-17

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    References listed on IDEAS

    1. Menegaki, Angeliki N., 2011. "Growth and renewable energy in Europe: A random effect model with evidence for neutrality hypothesis," Energy Economics, Elsevier, vol. 33(2), pages 257-263, March.
    2. Anne D. Boschini & Jan Pettersson & Jesper Roine, 2007. "Resource Curse or Not: A Question of Appropriability," Scandinavian Journal of Economics, Wiley Blackwell, vol. 109(3), pages 593-617, September.
    3. Halvor Mehlum & Karl Moene & Ragnar Torvik, 2006. "Institutions and the Resource Curse," Economic Journal, Royal Economic Society, vol. 116(508), pages 1-20, January.
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    7. van der Ploeg, Frederick & Poelhekke, Steven, 2010. "The pungent smell of "red herrings": Subsoil assets, rents, volatility and the resource curse," Journal of Environmental Economics and Management, Elsevier, vol. 60(1), pages 44-55, July.
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    12. Menegaki, Angeliki N., 2012. "A social marketing mix for renewable energy in Europe based on consumer stated preference surveys," Renewable Energy, Elsevier, vol. 39(1), pages 30-39.
    13. Gylfason, Thorvaldur, 2008. "Development and Growth in Mineral-Rich Countries," CEPR Discussion Papers 7031, C.E.P.R. Discussion Papers.
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    More about this item


    Natural resource curse; economic growth; renewable energy; Europe; fixed effects model;

    JEL classification:

    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe
    • P28 - Economic Systems - - Socialist Systems and Transition Economies - - - Natural Resources; Environment
    • P48 - Economic Systems - - Other Economic Systems - - - Political Economy; Legal Institutions; Property Rights; Natural Resources; Energy; Environment; Regional Studies
    • P52 - Economic Systems - - Comparative Economic Systems - - - Comparative Studies of Particular Economies
    • Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General


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