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Price Regulation and Environmental Externalities: Evidence from Methane Leaks

机译:价格监管和环境外部性:甲烷泄漏的证据

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We estimate expenditures by US natural gas distribution firms to reduce natural gas leaks. Reducing leaks averts commodity losses (valued at around $5/Mcf [thousand cubic feet]), but also climate damages ($27/Mcf) because the primary component of natural gas is methane, a potent greenhouse gas. In addition to this private/social wedge, incentives to abate are weakened by this industry’s status as a regulated natural monopoly: current price regulations allow many distribution firms to pass the cost of any leaked gas on to their customers. Our estimates imply that too little is spent repairing leaks—we estimate expenditures substantially below $5/Mcf, that is, less than the commodity value of the leaked gas. In contrast, expenditures on accelerated pipeline replacement are in general higher than the combination of gas costs and climate benefits (we estimate expenditures ranging from $48/Mcf to $211/Mcf). We conclude by relating these findings to regulatory-induced incentives in the industry.
机译:我们估计美国天然气分销公司为减少天然气泄漏所花费的资金。减少泄漏避免了商品损失(价值约5美元/千立方英尺[千立方英尺]),但也避免了气候损害(27美元/千立方英尺),因为天然气的主要成分是甲烷(一种有效的温室气体)。除了这种私人/社会障碍之外,减排的动机还由于该行业作为受监管的自然垄断地位而受到削弱:当前的价格法规允许许多分销公司将任何泄漏的天然气成本转嫁给客户。我们的估算表明,维修泄漏所花的钱太少了,我们估算的支出大大低于5美元/千立方英尺,即低于泄漏的天然气的商品价值。相比之下,加快管道更换的支出通常要高于天然气成本和气候效益的总和(我们估计支出范围为$ 48 / Mcf至$ 211 / Mcf)。最后,我们将这些发现与行业中由法规引起的激励机制联系起来。

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