RT Journal Article
SR Electronic
T1 Environmental and Land Use Regulation in Nonrenewable Resource Industries: Implications from the Wyoming Checkerboard
JF Land Economics
JO Land Econ
FD University of Wisconsin Press
SP 76
OP 94
DO 10.2307/3147145
VO 80
IS 1
A1 Kunce, Mitch
A1 Gerking, Shelby
A1 Morgan, William
YR 2004
UL http://le.uwpress.org/content/80/1/76.abstract
AB This paper examines how the oil and gas industry responds to changes in environmental and land use regulations pertaining to drilling by examining differences in regulatory practices on federal and private land. A simulation model for Wyoming is used to estimate losses of oil and gas output over the next 60 years because of higher drilling costs found on federal property. The present value of these losses comes to about $800 million. Also, this case study is of interest because it shows that future production is more sensitive to changes in environmental regulations that apply to drilling than to changes in severance taxes levied on production. (JEL Q24, Q32)