Fiscal Policy and Natural Resource Entitlements: Who Benefits from Mexican Oil?

This paper suggests a new approach to analysing the distribution of natural resource revenues and applies it to the case of Mexico. It defines a natural resource entitlement as a citizen’s per capita share of their country’s natural resource rents. The main finding is that, according to official estimates, Mexican fiscal policy transfers oil entitlements from the bottom 90 percent of the population to the top 10 percent of the population. This implies that, although fiscal policy is progressive relative to market income, it is regressive once oil entitlements are taken into account. I consider a fiscal reform that would ensure that every citizen received their oil entitlement, and in doing so would eliminate extreme poverty.

By: Paul Segal

Latest Tweets from @OxfordEnergy

  • OIES publishes its new gas quarterly review: With the smallest spread between Gazprom realised price and NBP since… https://t.co/aJMozV6lUe

    June 24th

  • Quarterly Gas Review – Analysis of Prices and Recent Events – Issue 2 https://t.co/075fO46XGN

    June 20th

  • OIES's @thierry_bros quoted in French @RFI on Australia LNG issues: higher domestic gas prices, much lower taxes th… https://t.co/2Dh5GtUZP5

    June 19th

Sign up for our Newsletter

Register your email address here and we will send you notification of new publications, comment, articles etc. automatically.