EconPapers    
Economics at your fingertips  
 

The effect of firm size on fracking safety

Jonathan Eyer

Resource and Energy Economics, 2018, vol. 53, issue C, 101-113

Abstract: Large firms are becoming increasingly dominant in the natural gas production industry. At the same time, regulators and environmental groups are concerned about potential environmental damage associated with hydraulic fracturing. However, small firms are protected from the full extent of their damages, while large firms must internalize a greater portion of their social costs. This paper examines the effect of firm size and liability on environmental safety in the context of hydraulic fracturing in Pennsylvania's Marcellus Shale across three dimensions of size. Impacts of firm size on safety are found across legal, regulatory, and brand dimensions of size with the largest effects being driven by changes in regulatory liability. These safety gains are sizable as violation rates would be approximately twice as high if firms at remained at 2008 sizes.

Keywords: Natural gas; Fracking; Judgment-proof problem; Firm size; Firm safety; Environmental safety (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0928765517301537
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:resene:v:53:y:2018:i:c:p:101-113

Access Statistics for this article

Resource and Energy Economics is currently edited by J. F. Shogren and S. Smulders

More articles in Resource and Energy Economics from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().

 
Page updated 2019-11-12
Handle: RePEc:eee:resene:v:53:y:2018:i:c:p:101-113