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Environmental Depletion, Governance and Conflict

Author

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  • Horatiu Rus

    (Department of Economics, University of Waterloo)

Abstract

The link between natural resource dependence and internal conflict has been approached from a variety of angles in a large and growing interdisciplinary literature. While there is an expanding consensus as to what matters the most for such intra-state violence episodes, the feasibility - discontent dichotomy still appears to characterize a disciplinary divide between economists and political scientists. This paper attempts to help bridge the gap by allowing for both intrinsic and extrinsic motivations of potential rebels. Simple non-cooperative bargaining yields a nonlinear impact of regulatory quality on the likelihood of conflict and shows that corruption and resource depletion jointly affect the outcome. The empirical analysis that follows looks at the effect of environmental depletion and government corruption on the emergence of civil conflicts using a large panel dataset. Resource depletion, the quality of governance and their interaction are found to be significant determinants of civil conflictincidence. Results are robust to several steps taken to address potential endogeneity concerns.

Suggested Citation

  • Horatiu Rus, 2010. "Environmental Depletion, Governance and Conflict," Working Papers 1007, University of Waterloo, Department of Economics, revised May 2010.
  • Handle: RePEc:wat:wpaper:1007
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    References listed on IDEAS

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    Cited by:

    1. Horatiu Rus, 2014. "Corruption, conflict and the management of natural resources," Economics of Governance, Springer, vol. 15(4), pages 355-386, November.
    2. Richard J. Cebula & Franklin G. Mixon Jr., 2014. "The Roles of Economic Freedom and Regulatory Quality in Creating a Favorable Environment for Investment in Energy R&D, Infrastructure, and Capacity," American Journal of Economics and Sociology, Wiley Blackwell, vol. 73(2), pages 299-324, April.

    More about this item

    JEL classification:

    • Q27 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Issues in International Trade
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • H56 - Public Economics - - National Government Expenditures and Related Policies - - - National Security and War

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