Author ORCID Identifier

http://orcid.org/0000-0002-4588-3308

Degree Year

2017

Document Type

Thesis

Degree Name

Bachelor of Arts

Department

Economics

Advisor(s)

Martin Saavedra

Committee Member(s)

Evan Kresch
Kenneth Liao
Barbara J. Craig
Ron Cheung
Hirschel Kasper
Edward McKelvey
Viplav Saini
Christopher Andrew James Cotter

Keywords

Natural gas, Fracking, Hydraulic fracturing, Oil, Fossil fuels, Climate change, Energy markets, Regulation, Regulatory uncertainty, Regulatory threat, Legislation, State government

Abstract

The United States is in the midst of a natural gas boom, but it’s unclear how long this high level of extraction is sustainable given the regulatory trajectory around carbon emissions and climate change. This paper examines how natural gas firms perceive regulatory uncertainty as measured by their capital expenditure. Using rig count data as a proxy for natural gas capital investment, I explore different ways to measure the perceived threat of state-level regulation and differing firm responses. I find strong evidence that regulatory uncertainty decreases the capital investments of firms, although I find that the effect of proposed regulation declines after about four months.

Included in

Economics Commons

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