The Political Economy of Oil, Autos, and the Urban Environment in Venezuela

Abstract

When Venezuela's economy, dependent on oil exports by the state-owned transnational corporation, produces a large surplus which the government uses to invest in urban infrastructure, especially highways. Highway investments and low gasoline prices reinforce auto dependency and contribute to urban congestion, air pollution, and public health problems. Oil and auto dependency benefit the middle and upper strata of the population, which have the highest levels of car ownership. The majority of the urban population do not own vehicles and suffer the worst consequences of environmental contamination.