Energy and environmental markets, industrial organization, and regulation

Kellogg, Ryan; Reguant, Mar

doi:10.1016/bs.hesind.2021.11.017

Cited by 4 publications

(3 citation statements)

References 159 publications

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“…It is assumed that the rental assessment reflects an increase in the economic effect of the exploitation of a natural resource or a decrease in the effect (the occurrence of damage) that occur as a result of the refusal to use it (a decrease in its quality, productivity). The amount of differential rent depends on the marginal (closing) costs, which are understood as the reduced costs of obtaining an additional unit of production from the closing consumer, and the amount of individual costs for the production of this type of product [16][17][18][19].…”

Section: Resultsmentioning

confidence: 99%

Methodological principles of forming a mechanism for assessing environmental damage from the functioning and development of industrial real estate within the boundaries of the urban environment

Grabovy,

Galishnikov,

Volkov

2023

E3S Web Conf.

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It is not possible to imagine the implementation of investment and construction projects for industrial purposes in isolation from the environment. During the construction and further operation of enterprises, it is necessary to remember the close relationship between nature and man and plan the processes of waste disposal from harmful substances. In pursuit of profit, management often forgets about air and water purification measures, which causes deterioration of the natural environment around the enterprise, complaints from residents, loss of business reputation, and often financial losses due to the need to eliminate the consequences of emissions. Thus, during the construction of industrial facilities, an important task is not only the calculation of profits from operation, but also environmental protection measures, which must necessarily be carried out by enterprises. The growth of the country's economy largely depends on the growth of gross domestic product (GDP). In 1934, when this indicator was first introduced, it was most often used to understand how much the country is ready for hostilities and how many products enterprises can produce to ensure stable functioning. Later, in the 40s, the indicator was associated with the volume of industrial production, since the service sector at that time was poorly developed. And accordingly, the calculation of the GDP indicator was a very necessary mechanism: the growth of GDP per capita from one thousand to 10 thousand. dollars meant a rapid leap in the material well-being of the population.

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Section: Resultsmentioning

confidence: 99%

Methodological principles of forming a mechanism for assessing environmental damage from the functioning and development of industrial real estate within the boundaries of the urban environment

Grabovy,

Galishnikov,

Volkov

2023

E3S Web Conf.

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“…patterns are not being driven by externalities like common pool inefficiencies or information spillovers (see Kellogg and Reguant (2021) for a review of research on these topics). We examine this possibility further in Figure A.2 in Appendix B.2, where we show that there is a spike in drilling prior to primary term expiration regardless of whether the unit operator controls nearby units or not.…”

Section: Evidence On Primary Terms and Bunching Of Drillingmentioning

confidence: 99%

“…Finally, in Section 7 we study how primary terms interact with royalties to affect the mineral owner's expected discounted revenue from a lease. We adopt a modeling framework in which firms have a hidden signal about productivity and owners can make take‐it‐or‐leave‐it contract offers, following the literature on oil and gas auctions (see Haile, Hendricks, and Porter (2010) and Kellogg and Reguant (2021) for reviews) and especially recent papers that study owner‐optimal royalties in auctions for state‐owned parcels (Bhattacharya, Ordin, and Roberts (2018), Ordin (2019), Kong, Perrigne, and Vuong (2022)). In these papers, a higher royalty rate trades off reductions in firms' information rents with decreases in firms' likelihood of drilling conditional on being awarded a lease, per theoretical arguments from Hendricks, Porter, and Tan (1993) and Skrzypacz (2013).…”

Section: Introductionmentioning

confidence: 99%

Drilling Deadlines and Oil and Gas Development

Herrnstadt,

Kellogg,

Lewis

2024

ECTA

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Oil and gas leases between mineral owners and extraction firms typically specify a date by which the firm must either drill a well or lose the lease. These deadlines are known as primary terms. Using data from the Louisiana shale boom, we first show that well drilling is substantially bunched just before the primary term deadline. This bunching is not necessarily surplus‐reducing: using an estimated model of firms' drilling and input choices, we show that primary terms can increase total surplus by countering the effects of leases' royalties, as royalties are a tax on revenue and delay drilling. These benefits are reduced, however, when production outcomes are sensitive to drilling inputs and when drilling one well indefinitely extends the period of time during which additional wells may be drilled. We enrich the model to consider mineral owners' lease offers and find small effects of primary terms on owners' revenue.

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