2018
DOI: 10.1086/698512
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Left in the Dark? Oil and Rural Poverty

Abstract: Do oil booms reduce poverty and inequality?To study this we propose a new measure of rural poverty: counting people that live in darkness at night. We do this by combining high-resolution satellite data on night-time lights and population globally from 2000-2013. This measure accurately identifies up to 83% of households as above or below the poverty line when compared to over 600,000 surveys. We find that both high oil prices and new discoveries increase illumination and GDP nationally, but promote inequality… Show more

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Cited by 36 publications
(25 citation statements)
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References 101 publications
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“…In this study, a special attention was paid to rural residents. The context of the study is associated with the problems of poverty and social exclusion in rural areas (Barbier and Hochard, 2018;Aggarwal, 2018;Smith and Wills, 2018;Thalassinos et al, 2019). The aim of the study is to reveal and determine the current state of poverty in rural areas in the countries and regions of the Visegrád Group.…”
Section: Purpose Methodology and Sources Of Informationmentioning
confidence: 99%
“…In this study, a special attention was paid to rural residents. The context of the study is associated with the problems of poverty and social exclusion in rural areas (Barbier and Hochard, 2018;Aggarwal, 2018;Smith and Wills, 2018;Thalassinos et al, 2019). The aim of the study is to reveal and determine the current state of poverty in rural areas in the countries and regions of the Visegrád Group.…”
Section: Purpose Methodology and Sources Of Informationmentioning
confidence: 99%
“…The Wealth Index (WI) (Figure 2a) drawn from the Demographic and Health Surveys (DHS) program [43][44][45] was used as the dependent variable of the poverty estimation model. WI is computed as the first principal component of household's ownership of selected assets (such as televisions and bicycles, materials used for housing construction, types of water access and sanitation facilities) and has been used as a reflection of household poverty level in previous studies [28,30,46]. The WI value is an integer ranging from 1 to 5, indicating the lowest, second, middle, fourth, and the highest asset levels.…”
Section: Datamentioning
confidence: 99%
“…Lowe (2014) suggests averaging across satellites in the years with two satellites; this reduces measurement error variance if errors are random, but if one satellite has a fixed tendency to detect differently than another, it may be better to include satellite fixed effects that place more weight on the within-satellite correlation across years, than on the between-satellite and within-year correlation. Henderson et al (2012) discuss the intercalibration approach in the remote-sensing literature but reject it in favor of using year dummies in their regressions, an approach followed in several other studies (e.g., Smith and Wills, 2018). Yet, these year dummies will not help with any fixed tendency for one satellite to detect light at brighter levels than what is detected by another.…”
Section: Signal Error and Temporal Comparabilitymentioning
confidence: 99%
“…The discussion in Section 2.3 suggests that detecting night lights by satellites is more appropriate for cities than for rural areas, due to the type of lights that are needed (such as high pressure sodium lamps) in order to be detected from space and due to the underlying differences in population density that produce more concentrated sources of lights. A few of the studies in Table 3 focus only on cities, but many also cover rural areas, and some rely on rates of detecting lights for villages or rural areas as outcomes of interest (e.g., Baskaran et al, 2015;Smith and Wills, 2018). The national-level findings from Keola et al (2015) and the regional-level findings from Gibson et al (2019), that DMSP night lights are negatively correlated with GDP in times or places where agriculture is more important, raise some doubts about what effects are being identified when DMSP lights data are a proxy for village-level activity or rural poverty.…”
Section: Some Uses Of Night Lights Data In Economicsmentioning
confidence: 99%