Open AccessCosts of Biological and Cultural Resource Protection to the U.S. Natural Gas Industry
Author(s) -
Mitch Kunce
Publication year - 2020
Publication title -
journal of statistical and econometric methods
Language(s) - English
DOI - 10.47260/jsem/1011
Subject(s) - endangered species , threatened species , wildlife , natural resource , natural resource economics , resource (disambiguation) , business , opportunity cost , drilling , natural gas , environmental resource management , environmental protection , geography , ecology , economics , habitat , engineering , biology , mechanical engineering , computer network , neoclassical economics , computer science
Using a unique land transaction from the 1860s in the Western U.S., this paper examines whether the presence of biological and cultural resources on private and federal land increase drilling costs to the U.S. natural gas industry. Our results suggest that the presence of these resources can increase costs, but the effect depends on the land type and which resources are being protected. The presence of threatened and endangered species increase drilling costs significantly on both federal and private lands; whereas the existence of migratory wildlife like elk and pronghorn does not. Cultural resources have a differentiated impact-they raise drilling costs significantly on federal lands, but not on private lands. JEL classification numbers: C23, Q58.Keywords: Endangered Species, U.S. Natural Gas, Cultural Resources, Drilling Costs.