International Political Economy and Renewable Energy: Hydroelectric Power and the Resource Curse. Issue 4 (8th January 2018) - Hancock, Kathleen J
Abstract: One of the most-studied issues regarding the role of natural resources in development is the so-called "resource curse": the paradoxical (and contested) situation in which a state with abundant resources has low rates of economic growth per capita, high levels of income inequality, low levels of democracy, high gender inequality, and high levels of domestic and international conflicts surrounding resources. Although the term seems to imply that the curse can apply to all resources, most research by political scientists, as well as by economists and other social scientists, examines the role of oil and hard minerals and omits many resources, including renewable energy resources. We argue that many of the causal mechanisms behind the curse, when it does manifest, hold for water-abundant states which have sufficient resources to create large hydroelectric projects. Drawing on illustrative examples of hydroelectric projects around the world, we demonstrate sufficient, albeit preliminary, evidence that most aspects of the resource curse literature apply to hydroelectric projects, at least in some states, and thus suggest the curse literature should be expanded to include water-abundance. Additionally, we add a new factor—fluctuating fuel supply—which could be an important variable for other resources as well. We conclude with suggestions for developing a research agenda and discuss policies to reduce the negative effects of resource curse.