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Rentierism in the Algerian economy based on oil and natural gas


  • Machín Álvarez, Alejandra


This essay analyzes Algeria's degree of adaptation toward possessing the constituent features of an oil and gas rentier economy, and whether its current status could be threatened by changes to its energy policy. With this aim, the article first uses empirical evidence to analyze different rentier features of the Algerian economy (the importance of the hydrocarbon sector, Algerian NOC Sonatrach's role in energy policy and revenue distribution). Second, the circuit that perpetuates rentier logic is described, the main conclusion being that the Algerian economy does indeed offer the very conditions that guarantee the self-perpetuation of rentierism. However, this conclusion is jeopardized by uncertainties stemming from two potential changes in the national status of the hydrocarbons sector: a greater presence of foreign hydrocarbon companies in Algeria, and growing internationalization by Sonatrach.

Suggested Citation

  • Machín Álvarez, Alejandra, 2010. "Rentierism in the Algerian economy based on oil and natural gas," Energy Policy, Elsevier, vol. 38(10), pages 6338-6348, October.
  • Handle: RePEc:eee:enepol:v:38:y:2010:i:10:p:6338-6348

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    References listed on IDEAS

    1. Hawkes, A.D. & Leach, M.A., 2008. "The capacity credit of micro-combined heat and power," Energy Policy, Elsevier, vol. 36(4), pages 1457-1469, April.
    2. Costa, Paulo Moisés & Matos, Manuel A. & Peças Lopes, J.A., 2008. "Regulation of microgeneration and microgrids," Energy Policy, Elsevier, vol. 36(10), pages 3893-3904, October.
    3. Milligan, Michael & Porter, Kevin, 2006. "The Capacity Value of Wind in the United States: Methods and Implementation," The Electricity Journal, Elsevier, vol. 19(2), pages 91-99, March.
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    Cited by:

    1. Fuinhas, José Alberto & Marques, António Cardoso, 2013. "Rentierism, energy and economic growth: The case of Algeria and Egypt (1965–2010)," Energy Policy, Elsevier, vol. 62(C), pages 1165-1171.
    2. repec:ipg:wpaper:2014-514 is not listed on IDEAS
    3. Bouoiyour, Jamal & Selmi, Refk & Shahbaz, Muhammad, 2014. "The Electricity Consumption in a Rentier State: Do Institutions Matter?," MPRA Paper 55412, University Library of Munich, Germany.
    4. Ghassan Dibeh, 2014. "The Political Economy of Monetary Policy in Resource-Rich Arab Economies," Working Papers 896, Economic Research Forum, revised Dec 2014.

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    Oil Rentierism Algeria;


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