Will the Mexican government's massive development of the Interoceanic Corridor, along the Isthmus of Tehuantepec, provide a badly needed boost to the area's economy? Adrian Duhalt analyzes the possible outcomes.
The number of energy-related social conflicts in Mexico has risen dramatically over the last several years. The authors review the reasons for these conflicts and the social impact assessments that should be required for firms developing energy projects in Mexico.
Ivonne Cruz, Adrian Duhalt, Pamela Lizette CruzJune 21, 2019
Fossil fuel subsidies have allowed energy exporting countries to distribute resource revenue, bolstering legitimacy for governments, many of which are not democratically elected. But subsidy benefits are dwarfed by the harmful consequences of encouraging uneconomic use of energy. Now, with consumption posing a threat to long-term exports, governments face a heightened need to raise prices that have come to be viewed as entitlements. While reforms of state benefits are notoriously politically dangerous, previous experience shows that subsidies can be rolled back without undermining government legitimacy — even in autocratic settings — given proper preparation.