Natural resource ownership, financial gains, and governance: The case of unconventional gas development in the UK and the US
Max Harleman and
Jeremy Weber ()
Energy Policy, 2017, vol. 111, issue C, 281-296
Who owns an area's natural resources affects the local financial gains from extraction and participation in resource governance. We develop a typology of ownership regimes using two dimensions of ownership, private versus public and local versus absentee, and apply it to unconventional natural gas development in the United Kingdom (UK) and the state of Pennsylvania in the United States. We find that local residents in Pennsylvania own 53% of the acreage leased for development and capture an estimated 8.5% of the value of production of the typical well, more than double what is expected from a well in the UK's public-absentee regime despite revenue-sharing policies. The dollar amount of local payments is also larger in Pennsylvania, with the difference reflecting policies and institutions, not differences in the value of production. The Pennsylvania case provides a benchmark for public-absentee owners considering policies to direct payments to communities hosting extraction: it gives the local payments corresponding to the case where subsurface owners voluntarily negotiate lease terms with energy firms and roughly half of ownership revenues accrue locally.
Keywords: Governance; Natural resources; Ownership; Unconventional natural gas; United Kingdom; Pennsylvania (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eee:enepol:v:111:y:2017:i:c:p:281-296
Access Statistics for this article
Energy Policy is currently edited by N. France
More articles in Energy Policy from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().