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Taxing Flaring and the Politics of State Methane Release Policy

Author

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  • Barry Rabe
  • Claire Kaliban
  • Isabel Englehart

Abstract

Methane is a potent greenhouse gas but it has received strikingly less social science attention than carbon dioxide in examining climate policy options. This article explores American state policy toward methane that is not captured and instead released into the atmosphere during oil and gas production. It examines whether states have adopted market‐based approaches to price methane flaring and venting through long‐standing severance taxes on natural gas extraction. Such taxes exist in all but one production state, routinely materializing after prolonged adoption battles. Most states have maintained methane release exemptions from these taxes through either statute or administrative discretion between 1960 and 2000, although a few have allowed some form of pricing. Two state legislatures have explored applying these taxes to methane releases on multiple occasions since 2000, amid expanded shale era output and growing public concern about climate and air quality impacts. Steadfast production industry opposition, rather than technical feasibility, emerges as the primary factor leading to rejection in these cases. Even when framing releases as a conventional air contaminant or as permanent loss of a nonrenewable natural resource, states largely continue to exempt flared or vented methane from severance taxes. 对甲烷燃烧征税与各州甲烷排放政策政治 甲烷是一种强悍的温室气体,但出乎意料的是,在研究气候政策选择时,它受到的社会科学关注远少于二氧化碳。本文探究了美国各州对石油天然气生产过程中未被捕捉而排放到大气层的甲烷的相关政策。本文检验了各州是否采取了基于市场的措施,用长期的天然气开采税为甲烷燃烧和排放定价。除一个州以外,通过被延长的辩论后,该税在其他所有州中照例实行。1960年至2000年期间,尽管一些州已允许一定形式的定价,但大多数州通过法规或行政自由裁量权维持了甲烷排放免税政策。自2000年起,两个州的立法机关已试图在多个场合将开采税应用于甲烷排放,其间页岩气输出扩大,且气候和空气质量影响方面出现越来越多的公共关切。来自石油天然气生产行业持续不变的反对,而不是技术可行性,成为了导致上述案例中拒绝征税的主要因素。甚至当把甲烷排放表述为一种传统的空气污染物或一种不可再生自然资源的永久损失时,大多数州依然将甲烷燃烧或甲烷排放从开采税中除名。 Gravación de impuestos y la política de liberación de metano del Estado El metano es un potente gas de efecto invernadero, pero ha recibido una atención sorprendentemente menor en ciencias sociales que el dióxido de carbono al examinar las opciones de política climática. Este artículo explora la política del estado estadounidense hacia el metano que no se captura y se libera a la atmósfera durante la producción de petróleo y gas. Examina si los estados han adoptado enfoques basados en el mercado para la quema y venteo de metano de precios a través de impuestos de indemnización de larga data sobre la extracción de gas natural. Dichos impuestos existen en todos los estados de producción menos uno, y se materializan rutinariamente después de prolongadas batallas de adopción. La mayoría de los estados han mantenido exenciones de liberación de metano de estos impuestos a través de estatutos o discreción administrativa entre 1960 y 2000, aunque algunos han permitido alguna forma de fijación de precios. Dos legislaturas estatales han explorado la aplicación de estos impuestos a las liberaciones de metano en múltiples ocasiones desde 2000, en medio de la expansión de la producción de la era de esquisto y la creciente preocupación pública por los impactos del clima y la calidad del aire. La oposición constante de la industria de producción, en lugar de la viabilidad técnica, emerge como el factor principal que conduce al rechazo en estos casos. Incluso cuando el encuadre se libera como un contaminante convencional del aire o como una pérdida permanente de un recurso natural no renovable, los estados continúan eximiendo en gran medida al metano quemado o ventilado de los impuestos de indemnización.

Suggested Citation

  • Barry Rabe & Claire Kaliban & Isabel Englehart, 2020. "Taxing Flaring and the Politics of State Methane Release Policy," Review of Policy Research, Policy Studies Organization, vol. 37(1), pages 6-38, January.
  • Handle: RePEc:bla:revpol:v:37:y:2020:i:1:p:6-38
    DOI: 10.1111/ropr.12369
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    References listed on IDEAS

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    Cited by:

    1. Steven Nelson & Jonathan M. Fisk, 2021. "End of the (Pipe)Line? Understanding how States Manage the Risks of Oil and Gas Wells," Review of Policy Research, Policy Studies Organization, vol. 38(2), pages 203-221, March.
    2. Etienne Romsom & Kathryn McPhail, 2021. "Capturing economic and social value from hydrocarbon gas flaring and venting: solutions and actions," WIDER Working Paper Series wp-2021-6, World Institute for Development Economic Research (UNU-WIDER).
    3. Evelyn Dietsche, 2020. "Taxing extractive resources in the transition to a low-carbon future," WIDER Working Paper Series wp-2020-125, World Institute for Development Economic Research (UNU-WIDER).

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