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Resource-richness and economic growth in contemporary U.S

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  • Jaimes, Richard
  • Gerlagh, Reyer

Abstract

We study the effects of energy innovation and policy on income growth. Between 1997 and 2014, US corn, soybean, and cotton production almost fully converted to genetically modified crops. Starting around 2007, improved tight oil and shale gas technologies turned the declining US fossil fuel production into a booming industry. We study the effects of these two resource technology revolutions on US state income. We find that the shale revolution increased income in states abundant in oil and gas resources. States dependent on agricultural production also saw an increase in income, which we, however, attribute not only to the GM innovation but to a demand increase brought by the Energy Policy Act of 2005.

Suggested Citation

  • Jaimes, Richard & Gerlagh, Reyer, 2020. "Resource-richness and economic growth in contemporary U.S," Energy Economics, Elsevier, vol. 89(C).
  • Handle: RePEc:eee:eneeco:v:89:y:2020:i:c:s014098832030150x
    DOI: 10.1016/j.eneco.2020.104810
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    More about this item

    Keywords

    Natural resources; Economic growth; Resource curse; Resource blessing;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development
    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q33 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Resource Booms (Dutch Disease)

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