What motivates membership in non-renewable resource cartels? The case of OPEC

Charles F. Mason, Stephen Polasky

Research output: Contribution to journalArticlepeer-review

10 Scopus citations

Abstract

In this paper, we analyze the question of membership in a non-renewable resource cartel, with specific application to OPEC. One would expect the benefits of cartel membership to be positively related to the size of remaining reserves, while domestic petroleum consumption should be negatively related to membership if countries care about consumer interests. Our econometric analysis indicates that larger reserves and lower consumption are positively associated with OPEC membership. On the other hand, membership does not appear to be systematically related to countries' religious makeup. Our regressions correctly predict membership for the vast majority of oil-producing countries.

Original languageEnglish (US)
Pages (from-to)321-342
Number of pages22
JournalResource and Energy Economics
Volume27
Issue number4
DOIs
StatePublished - Nov 2005

Keywords

  • Cartel
  • Non-renewable resources
  • OPEC

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