Oil, Politics, and “Corrupt Bastards”

Peer Reviewed
31 December 2021

Journal of Environmental Economics and Management

Alexander James, Nathaly M. Rivera

Abstract

Does oil corrupt? We test this theory using forty years of U.S. state-level data measuring corruption as both convictions of corruption and the frequency that words like “corrupt”, “fraud”, and “bribe”—and their iterations—appear in newspapers. We find that oil-rich U.S. states experience more corruption than their oil-poor counterparts, but only during periods of high oil prices, suggesting a causal relationship. Results are robust to a variety of modeling assumptions and specifications. Implications and mechanisms are discussed.

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Publication reference
James, A., & Rivera, N. M. (2022). Oil, politics, and “Corrupt Bastards.” Journal of Environmental Economics and Management, 111, 102599. https://doi.org/10.1016/j.jeem.2021.102599
Publication | 24 August 2022