Policy Instrument Options for Addressing Methane Emissions from the Oil and Gas Sector

Mohlin, Kristina, Maureen Lackner, Huong Nguyen and Aaron Wolfe. "Policy Instrument Options for Addressing Methane Emissions from the Oil and Gas Sector", Environmental Defense Fund Economics Discussion Paper Series, EDF EDP 22-01, June 2022.

68 Pages Posted: 27 Jun 2022 Last revised: 7 Jul 2022

See all articles by Kristina Mohlin

Kristina Mohlin

Environmental Defense Fund

Maureen Lackner

Environmental Defense Fund

Huong Nguyen

Environmental Defense Fund

Aaron Wolfe

Environmental Defense Fund

Date Written: June 14, 2022

Abstract

Policy makers around the world are increasingly recognizing the need to drastically reduce methane emissions in parallel with carbon dioxide emissions. More than a hundred countries have signed the Global Methane Pledge and made a collective commitment to reduce global methane emissions by 30% by 2030 from 2020 levels.

Methane emissions in the oil and gas sector are considered particularly promising, not only because of low or even negative net abatement costs for many emission sources, but also because most of these solutions involve mature existing technologies and work practices. Still, methane-reduction efforts in this sector have not yet been realized extensively due to a combination of informational, structural, financial, and regulatory barriers. This paper therefore lays out regulatory and policy instrument options available to strengthen the incentives to address methane emissions in jurisdictions that produce oil and gas as well as in those that import oil and gas.

The objective of this paper is to give policy makers, regulators, and other stakeholders a description of the main policy and regulatory levers available to realize the significant methane mitigation opportunities in the oil and gas sector. It aims to provide an overview of the different policy instrument options and thereby help policy makers assess which option is most attractive given regional circumstances and the relevant regulatory and political constraints.

Keywords: Climate policy, methane emissions, oil and gas sector, environmental policy instruments, environmental policy design

JEL Classification: Q01, Q35, Q38, Q58

Suggested Citation

Mohlin, Kristina and Lackner, Maureen and Nguyen, Huong and Wolfe, Aaron, Policy Instrument Options for Addressing Methane Emissions from the Oil and Gas Sector (June 14, 2022). Mohlin, Kristina, Maureen Lackner, Huong Nguyen and Aaron Wolfe. "Policy Instrument Options for Addressing Methane Emissions from the Oil and Gas Sector", Environmental Defense Fund Economics Discussion Paper Series, EDF EDP 22-01, June 2022. , Available at SSRN: https://ssrn.com/abstract=4136535 or http://dx.doi.org/10.2139/ssrn.4136535

Kristina Mohlin (Contact Author)

Environmental Defense Fund ( email )

257 Park Avenue South
New York, NY NY 10010
United States

Maureen Lackner

Environmental Defense Fund ( email )

1875 Connecticut ave
257 Park Avenue South
Washington, DC 20009
United States
2126161442 (Phone)

Huong Nguyen

Environmental Defense Fund ( email )

1875 Connecticut ave
257 Park Avenue South
Washington, DC 20009
United States

Aaron Wolfe

Environmental Defense Fund ( email )

1875 Connecticut ave
257 Park Avenue South
Washington, DC 20009
United States

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