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Environmental Compliance and Energy Exploration and Production: Application to Offshore Oil and Gas

Listed author(s):
  • Di Jin
  • DThomas A. Grigalunas
Registered author(s):

    An integrated investment-production-regulatory model is developed to examine the economic consequences of proposed environmental regulations on firms in the offshore oil and gas industry. OCS-related environmental regulatory issues, the general modeling approach, and selected simulation results are discussed. The results show that the impacts of these regulations on OCS firms can be significant in terms of the reduction in after-tax-net present value, the distribution of economic rent, and minimum field size. Results also indicate that at the firm level, the influences of different sets of regulatory proposals vary significantly with more stringent regulations having bigger effects.

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    File URL: http://www.jstor.org/stable/pdfplus/3146281
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    Article provided by University of Wisconsin Press in its journal Land Economics.

    Volume (Year): 69 (1993)
    Issue (Month): 1 ()
    Pages: 82-97

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    Handle: RePEc:uwp:landec:v:69:y:1993:i:1:p:82-97
    Contact details of provider: Web page: http://le.uwpress.org/

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