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Power in the Pipeline

Author

Listed:
  • Quentin Gallea
  • Massimo Morelli
  • Dominic Rohner

Abstract

This paper provides the first comprehensive empirical analysis of the role of natural gas for the domestic and international distribution of power. The crucial role of pipelines for the trade of natural gas determines a set of network effects that are absent for other natural resources such as oil and minerals. Gas rents are not limited to producers but also accrue to key players occupying central nodes in the gas network. Drawing on our new gas pipeline data, this paper shows that gas betweenness-centrality of a country increases substantially the ruler's grip on power as measured by leader turnover. A main mechanism at work is the reluctance of connected gas trade partners to impose sanctions, meaning that bad behavior of gas-central leaders is tolerated for longer before being sanctioned. Overall, this reinforces the notion that fossil fuels are not just poison for the environment but also for political pluralism and healthy regime turnover.

Suggested Citation

  • Quentin Gallea & Massimo Morelli & Dominic Rohner, 2022. "Power in the Pipeline," Papers 2210.03572, arXiv.org.
    • Handle: RePEc:arx:papers:2210.03572
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    References listed on IDEAS

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    11. Frederick van der Ploeg, 2011. "Natural Resources: Curse or Blessing?," Journal of Economic Literature, American Economic Association, vol. 49(2), pages 366-420, June.
    12. Quentin Gallea & Dominic Rohner, 2021. "Globalization mitigates the risk of conflict caused by strategic territory," Proceedings of the National Academy of Sciences, Proceedings of the National Academy of Sciences, vol. 118(39), pages 2105624118-, September.
    13. Michael D. König & Dominic Rohner & Mathias Thoenig & Fabrizio Zilibotti, 2017. "Networks in Conflict: Theory and Evidence From the Great War of Africa," Econometrica, Econometric Society, vol. 85, pages 1093-1132, July.
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    18. Quentin Gallea, 2019. "Arming opposition: Measuring the effect of arms transfers on internal conflict," Cahiers de Recherches Economiques du Département d'économie 19.10, Université de Lausanne, Faculté des HEC, Département d’économie.
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