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How to spend it: resource wealth and the distribution of resource rents

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  • Segal, Paul

Abstract

Natural resource revenues differ from other government revenues both in their time profile, and in their political and legal status: they are volatile and exhaustible, and belong to all citizens of the country in which they are located. This paper discusses the optimal expenditure of natural resource revenues, based on economic theory and with reference to existing international practices. It considers both the distributional impact and the efficiency of alternative policies, focusing on the extent to which they succeed in providing all citizens with their share of the benefits due to natural resources. It also shows how, by dropping the assumption of a representative agent, a concern for poverty and social welfare more generally interacts with and alters standard recommendations for the intertemporal management of resource revenues.

Suggested Citation

  • Segal, Paul, 2011. "How to spend it: resource wealth and the distribution of resource rents," LSE Research Online Documents on Economics 55664, London School of Economics and Political Science, LSE Library.
  • Handle: RePEc:ehl:lserod:55664
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    References listed on IDEAS

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    Cited by:

    1. Giorgio Brosio & Raju Jan Singh, 2014. "Revenue Sharing of Natural Resources in Africa : Reflections from a Review of International Practices," World Bank Other Operational Studies 20062, The World Bank.
    2. repec:bla:afrdev:v:29:y:2017:i:s1:p:42-55 is not listed on IDEAS
    3. Apergis, Nicholas & Payne, James E., 2014. "The oil curse, institutional quality, and growth in MENA countries: Evidence from time-varying cointegration," Energy Economics, Elsevier, vol. 46(C), pages 1-9.
    4. Cockx, Lara & Francken, Nathalie, 2016. "Natural resources: A curse on education spending?," Energy Policy, Elsevier, vol. 92(C), pages 394-408.
    5. Michael Jakob & Jérôme Hilaire, 2015. "Using importers’ windfall savings from oil subsidy reform to enhance international cooperation on climate policies," Climatic Change, Springer, vol. 131(4), pages 465-472, August.
    6. Rick van der Ploeg, 2014. "Guidelines for exploiting natural resource wealth," Oxford Review of Economic Policy, Oxford University Press, vol. 30(1), pages 145-169.

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    • N0 - Economic History - - General

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