Author ORCID Identifier
Bachelor of Arts
Barbara J. Craig
Christopher Andrew James Cotter
Natural gas, Fracking, Hydraulic fracturing, Oil, Fossil fuels, Climate change, Energy markets, Regulation, Regulatory uncertainty, Regulatory threat, Legislation, State government
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.
Clarkberg, Jasper W., "Regulatory Uncertainty and the Natural Gas Industry in the US" (2017). Honors Papers. 186.