TY - JOUR
T1 - What motivates membership in non-renewable resource cartels? The case of OPEC
AU - Mason, Charles F.
AU - Polasky, Stephen
PY - 2005/11
Y1 - 2005/11
N2 - 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.
AB - 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.
KW - Cartel
KW - Non-renewable resources
KW - OPEC
UR - http://www.scopus.com/inward/record.url?scp=27944492400&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=27944492400&partnerID=8YFLogxK
U2 - 10.1016/j.reseneeco.2005.04.003
DO - 10.1016/j.reseneeco.2005.04.003
M3 - Article
AN - SCOPUS:27944492400
SN - 0928-7655
VL - 27
SP - 321
EP - 342
JO - Resource and Energy Economics
JF - Resource and Energy Economics
IS - 4
ER -