The United States has a complex patchwork of mineral ownership, where rights to oil and gas may be owned by the federal government, state governments, or private agents. I show why the policies imposed by one owner have theoretically ambiguous spillover effects on the drilling and production outcomes of neighboring plots of land. Exploiting a natural experiment in Wyoming with exogenous ownership assignment, I find significant spillovers: federal land close to state land has a lower probability of drilling than federal land far from state land.
"Patchwork Policies, Spillovers, and the Search for Oil and Gas."
American Economic Journal: Economic Policy,
Mining, Extraction, and Refining: Hydrocarbon Fuels
Capitalist Systems: Property Rights
Nonrenewable Resources and Conservation: Government Policy