The Economics of Natural Gas Flaring: An Agenda for Research and Policy
54 Pages Posted: 21 Jul 2020
Date Written: July 19, 2020
Flaring of natural gas is one of the most visible signs of pollution in the oil and gas industry and, perhaps paradoxically, one of the least understood. We marshal granular data on the oil and gas value chain to identify the bottlenecks in the value chain that physically cause flaring. We analyze the economic reasons for flaring, market distortions that could exacerbate it, and the cost to society of flaring. We lay out an agenda for researchers and policymakers charged with understanding and regulating flaring.
Keywords: flaring, methane, natural gas, shale, energy policy, environmental policy
JEL Classification: Q35, Q48, Q53, Q54
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