The Impact of Removing Tax Preferences for US Oil and Natural Gas Production: Measuring Tax Subsidies by an Equivalent Price Impact Approach

A-Tier
Journal: Journal of the Association of Environmental and Resource Economists
Year: 2018
Volume: 5
Issue: 1
Pages: 1 - 37

Score contribution per author:

4.022 = (α=2.01 / 1 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This paper presents a novel methodology for estimating impacts on domestic supply of oil and natural gas from changes in the tax treatment of oil and gas production. Using this approach along with simple market models for oil and natural gas, it finds that removing the major tax preferences for the oil and gas industry would have modest impacts on global oil production, consumption, or prices. Domestic oil and gas production is estimated to decline by 4%–5% over the long run. Global oil prices would rise by less than 1%. Domestic natural gas prices are estimated to rise by 7%–10%.

Technical Details

RePEc Handle
repec:ucp:jaerec:doi:10.1086/693367
Journal Field
Environment
Author Count
1
Added to Database
2026-01-26