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A quantitative description of state-level taxation of oil and gas production in the continental U.S

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  • Weber, Jeremy G.
  • Wang, Yongsheng
  • Chomas, Maxwell

Abstract

We provide a quantitative description of state-level taxation of oil and gas production in the continental U.S. for 2004–2013. Aggregate revenues from production taxes nearly doubled in real terms over the period, reaching $10.3 billion and accounting for 20% of tax receipts in the top ten revenue states. The average state had a tax rate of 3.6%; nationally, the average dollar of production was taxed at 4.2%. The oil-specific rate estimated for the study period is $2.4 per barrel or $5.5 per ton of carbon. Lastly, state-level tax rates are two-thirds higher in states excluding oil and gas wells from local property taxes, suggesting that the policies are substitutes for one another.

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  • Weber, Jeremy G. & Wang, Yongsheng & Chomas, Maxwell, 2016. "A quantitative description of state-level taxation of oil and gas production in the continental U.S," Energy Policy, Elsevier, vol. 96(C), pages 289-301.
    • Handle: RePEc:eee:enepol:v:96:y:2016:i:c:p:289-301
    DOI: 10.1016/j.enpol.2016.06.008
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    Cited by:

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    3. Brown, Jason P. & Maniloff, Peter & Manning, Dale T., 2020. "Spatially variable taxation and resource extraction: The impact of state oil taxes on drilling in the US," Journal of Environmental Economics and Management, Elsevier, vol. 103(C).
    4. Katie Jo Black & Shawn J. McCoy & Jeremy G. Weber, 2018. "When Externalities Are Taxed: The Effects and Incidence of Pennsylvania’s Impact Fee on Shale Gas Wells," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 5(1), pages 107-153.
    5. Adele Morris & Noah Kaufman & Siddhi Doshi, 2020. "Revenue at Risk in Coal-Reliant Counties," NBER Working Papers 27307, National Bureau of Economic Research, Inc.
    6. Zuo, Na & Zhong, Hua, 2020. "Can resource policy reverse the resource curse? Evidence from China," Resources Policy, Elsevier, vol. 68(C).
    7. Brian E. Whitacre & Dylan L. Johnston & David W. Shideler & Notie H. Lansford, 2020. "The influence of oil and natural gas employment on local retail spending: evidence from Oklahoma panel data," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 64(1), pages 133-157, February.
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    10. Ericson, Sean J. & Kaffine, Daniel T. & Maniloff, Peter, 2020. "Costs of increasing oil and gas setbacks are initially modest but rise sharply," Energy Policy, Elsevier, vol. 146(C).
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    More about this item

    Keywords

    State policy; Oil and gas taxation; Effective rates;
    All these keywords.

    JEL classification:

    • Q38 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Government Policy (includes OPEC Policy)
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

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