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Being rich in energy resources – a blessing or a curse

Author

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  • Schubert, Samuel R.

Abstract

“Being rich in energy resources – a blessing or a curse” finds that an energy resource curse plagues many EU supplier states. This in turn directly affects Europe’s energy supply security and threatens to engulf Europe in unwanted hostilities at home and abroad. The study addresses seven issues including the evidence suggesting that a curse exists among Europe’s external energy suppliers, active programs to limit that risk, the significance of economic diversification, the applicability of dividend programs, the link between corruption and security of energy supplies, additional possible actions of the Union, and further threats posed by resource cursed countries. It establishes a definitive links between corruption and supply security, poor transparency, and inequality, and proves that a low level of economic diversification is a reliable indicator for the existence of the curse. It also finds that there are examples of excellence in recovering from and even converting the curse to a blessing. In looking at the policy instruments available to the Union, the study determines that the Union does have the technical expertise and financial means to restructure political and economic systems and strengthen public administrations and institutions and found that Europe’s successful implementation of similar past programs could be taken, at least in part, as models for future efforts. Finally, the study recommends the controversial approach of conditionality in the use of aid and finds that the Union should legislate standards for the reporting and auditing of energy exports and imports at home and abroad.

Suggested Citation

  • Schubert, Samuel R., 2007. "Being rich in energy resources – a blessing or a curse," MPRA Paper 10108, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:10108
    as

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    File URL: https://mpra.ub.uni-muenchen.de/10108/1/MPRA_paper_10108.pdf
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    References listed on IDEAS

    as
    1. Correlje, Aad & van der Linde, Coby, 2006. "Energy supply security and geopolitics: A European perspective," Energy Policy, Elsevier, vol. 34(5), pages 532-543, March.
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    More about this item

    Keywords

    Resource Curse; Oil Curse; Energy Security; Energy Policy; EU; European Union; Foreign Policy; Development Policy;

    JEL classification:

    • F52 - International Economics - - International Relations, National Security, and International Political Economy - - - National Security; Economic Nationalism
    • F0 - International Economics - - General
    • Q33 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Resource Booms (Dutch Disease)
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • Q38 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Government Policy (includes OPEC Policy)
    • N55 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries - - - Asia including Middle East
    • H56 - Public Economics - - National Government Expenditures and Related Policies - - - National Security and War
    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • Y1 - Miscellaneous Categories - - Data: Tables and Charts
    • F59 - International Economics - - International Relations, National Security, and International Political Economy - - - Other
    • E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook
    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • F51 - International Economics - - International Relations, National Security, and International Political Economy - - - International Conflicts; Negotiations; Sanctions
    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy
    • Q34 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Natural Resources and Domestic and International Conflicts
    • N50 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries - - - General, International, or Comparative
    • Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development
    • L71 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Mining, Extraction, and Refining: Hydrocarbon Fuels
    • C19 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Other
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • F35 - International Economics - - International Finance - - - Foreign Aid
    • L78 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Government Policy
    • O2 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • H10 - Public Economics - - Structure and Scope of Government - - - General
    • N54 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries - - - Europe: 1913-
    • F50 - International Economics - - International Relations, National Security, and International Political Economy - - - General
    • A13 - General Economics and Teaching - - General Economics - - - Relation of Economics to Social Values
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L3 - Industrial Organization - - Nonprofit Organizations and Public Enterprise
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries
    • F53 - International Economics - - International Relations, National Security, and International Political Economy - - - International Agreements and Observance; International Organizations
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics

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