Natural Resource Ownership, Financial Gains, and Governance: The Case of Unconventional Gas Development in the UK and the US

Harleman, Max; Weber, Jeremy G.

doi:10.2139/ssrn.3014135

Cited by 1 publication

(2 citation statements)

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“…subsurface makes extraction more desirable or efficient. Harleman and Weber (2017) describe four broad ownership regimes that vary based on public versus private ownership and local versus absentee ownership. Private resource ownership does not guarantee large local income gains.…”

Section: Resource Ownership Regimes and Implicationsmentioning

confidence: 99%

“…Private-absentee ownership, for example, would generate fewer local benefits than public-local ownership. Even in public-absentee regimes, central governments can redistribute ownership revenues to localities where extraction occurs as the UK government has proposed to do with tax revenues generated through shale gas development (Harleman and Weber 2017).…”

Section: Resource Ownership Regimes and Implicationsmentioning

confidence: 99%

See 1 more Smart Citation

Does Resource Ownership Matter? Oil and Gas Royalties and the Income Effect of Extraction

Brown¹,

Fitzgerald²,

Weber³

2019

Journal of the Association of Environmental and Resource Econom

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We study how subsurface ownership shapes the income effects of oil and gas extraction. For the average US county with growth in extraction from 2000 to 2014, we find that royalty income and its multiplier effect accounted for 70% of the total income gain, with each royalty dollar generating an additional 49 cents of local income. A county where residents own the subsurface captured 28 cents more of each dollar in production than one with absentee ownership. Nationally, oil and gas production increased US personal income in 2014 by $67 billion (0.5%) more than if all royalties accrued abroad. Areas with the same resource abundance can therefore experience contrasting economic outcomes because of differences in ownership.

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Section: Resource Ownership Regimes and Implicationsmentioning

confidence: 99%

Section: Resource Ownership Regimes and Implicationsmentioning

confidence: 99%