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THE INCOME DISTRIBUTION EFFECTS OF A NATURAL GAS PRICE INCREASE
Author(s) -
STOCKFISCH J. A.
Publication year - 1982
Publication title -
contemporary economic policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.454
H-Index - 49
eISSN - 1465-7287
pISSN - 1074-3529
DOI - 10.1111/j.1465-7287.1982.tb00750.x
Subject(s) - wellhead , deregulation , natural gas , economics , distribution (mathematics) , natural gas prices , earnings , natural resource economics , capital (architecture) , monetary economics , macroeconomics , petroleum engineering , finance , engineering , history , mathematical analysis , mathematics , archaeology , waste management
Deregulation of wellhead natural gas prices will affect individuals as consumers and resource owners. It is shown that higher natural gas prices will be roughly progressive with respect to household and general consumers. The effects on the distribution of resource earnings will be ambiguous because although the oil and gas industry is highly capital intensive, natural gas price deregulation will likely cause reduced spending on other capital‐intensive activities, including deep drilling for high cost gas, gas utility distribution, and exports. Overall, no clear case can be made that gas wellhead price deregulation will be regressive