Taxing Fracking: The Politics of State Severance Taxes in the Shale Era

Review of Policy Research

Volumn 32, Issue 4, 2015, Pages 389-412

  Rabe, Barry G ^a   Hampton, Rachel L ^b  

^a UNIVERSITY OF MICHIGAN   (United States)

^b UNIVERSITY OF MICHIGAN LAW SCHOOL   (United States)

Author keywords

Economic development; Energy; Environment; Fracking; Governance; Hydraulic fracturing; Severance; Severance tax; Shale gas; States; Taxation; United States

Indexed keywords

ECONOMIC DEVELOPMENT; ENERGY RESOURCE; GAS PRODUCTION; GOVERNANCE APPROACH; HYDRAULIC FRACTURE; OIL PRODUCTION; POLITICAL INTEGRATION; SHALE; TAX SYSTEM;

EID: 84947927215     PISSN: 1541132X     EISSN: 15411338     Source Type: Journal    
DOI: 10.1111/ropr.12127     Document Type: Article

References (54)

1. Adgate, J. L., Goldstein, B. D., & McKenzie, L. M. (2014). Potential public health hazards, exposures and health effects from unconventional natural gas development, Environmental Science & Technology, 49(15), 8307-8320.
2. Boettner, T., Kriesky, J., McIlmoil, R., & Paulhus, E. (2012). Creating an economic diversification trust fund. Turning nonrenewable natural resources into sustainable wealth for West Virginia. Charleston, WV: West Virginia Center on Budget and Policy.
3. Bolstad, E. (2014, April 7). Bakken boom town invests in "quality of life" builds Palatial Rec Center. Greenwire. Retrieved from http://www.eenews.net/login?r=%2Fgreenwire%2Fstories%2F1059997462%2Fsearch%3Fkeyword%3DBolstad
4. Brown, C. (2013). State revenues and the natural gas boom: An assessment of state oil and gas production taxes. Denver, CO: National Conference of State Legislatures.
5. Campoy, A., Peters, M., & Phillips E. (2015, January 13). Energy-heavy states get a crude awakening. Wall Street Journal. p. A3.
6. Christopherson, S., & Rightor, N. (2013, November). Confronting an uncertain future: How U.S. communities are responding to shale gas and oil development. National Agricultural and Rural Development Policy Center. Brief 18. Retrieved from http://www.nardep.info/Publications_2.html
7. Cocklin, J. (2014, September 25). XTO chief critiques appalachian states' taxes. Natural Gas Intelligence. Retrieved from http://www.naturalgasintel.com/articles/99831-xto-chief-calls-appalachian-state-regulations-outdated
8. Costanza, R., & Daly, H. E. (1992). Natural capital and sustainable development. Conservation Biology, 6(1), 37-46.
9. Davis, C. (2014). Substate federalism and fracking policies: Does state regulatory authority trump local land use autonomy? Environmental Science & Technology, 49(15), 8397-8403.
10. Department of the Auditor General, Commonwealth of Pennsylvania. (2014). DEP's performance in monitoring potential impacts to water quality from shale gas development. Harrisburg, PA: Commonwealth of Pennsylvania.
11. Dinan, J., & Gamkhar, S. (2009). The state of American federalism 2008-2009: The presidential election, the economic downturn, and the consequences for federalism. Publius: The Journal of Federalism, 39(3), 369-407.
12. Dutzik, T., Davis, B., Van Heeke, T., & Rumpler, J. (2013). Who pays the cost of fracking? Harrisburg, PA: Penn Environment.
13. E&E Publishing. (2014). Turning Carolina Red Reports from the front of an energy culture war. Washington, DC: E&E Publishing, LLC.
14. Farmer, L. (2014, April). Why do cash-strapped governments have rich citizens? Governing. Retrieved from http://www.governing.com/topics/transportation-infrastructure/gov-rich-counties-strapped-governments.html
15. Fehr, S. C., & Maynard, M. (2013, August 28). North Dakota saves for the future with today's oil riches. USA Today.
16. Forgey, P. (2013, April 14). Alaska senate approves Parnell's multibillion dollar oil tax cut. Alaska Dispatch.
17. Gold, R. (2012, December 24). North Dakota enjoys oil boom-But girds for slowdown. Wall Street Journal.
18. Goldsmith, S. (2012). The Alaska permanent fund dividend: A case study in the direct distribution of resource rent. In T. Moss (Ed.), The governor's solution: How Alaska's oil dividend could work in Iraq and other oil-rich countries (pp. 57-87). Washington, DC: Center for Global Development.
19. Haggerty, M. (2012). Oil and natural gas fiscal best practices. Bozeman, MT: Headwaters Economics.
20. Hammond, J. (2012). Diapering the devil. In T. Moss (Ed.), The governor's solution (pp. 5-54). Washington, DC: Center for Global Development.
21. Harrison, K. (Ed.). (2006). Racing to the bottom. Vancouver: University of British Columbia Press.
22. Harriss, C. L. (2006). Nonrenewable exhaustible resources and property taxation. American Journal of Economics and Sociology, 65(3), 694-699.
23. Healy, J. (2013, November 30). As oil floods plains towns, crime pours in. The New York Times.
24. Independent Fiscal Office. (2014). Natural gas extraction: An interstate tax comparison. Harrisburg, PA: IFO.
25. Jacquet, J. B. (2014). Review of risks to communities from shale energy development. Environmental Science & Technology, 48(15), 8321-8333.
26. Kardish, C. (2014, July). How North Carolina turned so red so fast. Governing. Retrieved from http://www.governing.com/topics/politics/gov-north-carolina-southern-progressivism.html
27. Levi, M. (2013). The power surge: Energy, opportunity, and the battle for America's future. New York: Oxford University Press.
28. Mieszkowski, P., & Soligo, R. (2012). United States. In G. Anderson (Ed.), Oil & gas in federal systems (pp. 310-338). New York: Oxford University Press.
29. National Conference of State Legislatures. (2012). State severance taxes. Retrieved from http://www.ncsl.org/research/fiscal-policy/2011-state-severance-tax-collections.aspx
30. Osnos, E. (2014, April 7). Chemical valley. The New Yorker, pp. 38-49.
31. Parnell, S. (2013, April 16). The Alaskan oil comeback. Juneau Empire.
32. Patashnik. E. (2000). Putting trust in the US budget: Federal trust funds and the politics of commitment. Cambridge: Cambridge University Press.
33. Peiserich, J. F., & Christian, M. R. (2013). A summary of revisions to Idaho's oil and gas conversation act and rules: Responding as production in Idaho nears reality. Idaho Law Review, 49, 497.
34. Peterson, P. E. (1995). The price of federalism. Washington, DC: Brookings Institution Press.
35. Pless, J. (2012). Oil and gas severance taxes: States work to alleviate fiscal pressures amid the natural gas boom. Denver, CO: National Conference of State Legislatures.
36. Pless, J. (2013). States take the lead on regulating hydraulic fracturing. Denver, CO: National Conference of State Legislatures.
37. Plourde, A. (2012). Canada. In G. Anderson (Ed.), Oil & Gas in federal systems (pp. 88-120). New York: Oxford University Press.
38. Pretes, M. (1988). Conflict and cooperation: The Alaska permanent fund, the Alberta heritage fund and federalism, American Review of Canadian Studies, 18(1), 39-49.
39. Rabe, B. G. (2014). Shale play politics: The intergovernmental Odyssey of American shale governance. Environmental Science & Technology, 48(15), 8369-8375.
40. Rabe, B. G., & Borick, C. P. (2012). Carbon taxation and policy labeling: Experience from American states and Canadian provinces. Review of Policy Research, 29(3), 358-382.
41. Rabe, B. G., & Borick, C. P. (2013). Conventional politics for unconventional drilling? Lessons from Pennsylvania's early move into fracking policy development. Review of Policy Research, 30(3), 321-340.
42. Raimi, D., & Newell, R. (2014). Shale public finances. Durham, NC: Duke University Energy Initiative.
43. Richardson, J. A. (2005). Severance tax, state. The encyclopedia of taxation & tax policy (2nd ed., pp. 357-360). Washington, DC: The Urban Institute Press.
44. Richardson, N., Gottlieb, M., Krupnick, A., & Wiseman, H. (2013, June). The state of state shale gas regulation. Washington, DC: Resources for the Future.
45. Saha, D., & Gamkhar, S. (2005, Fall). Evaluating the distribution of environmental and social impacts of the petroleum refining industry: A preliminary analysis. LBJ Journal of Public Affairs, 17(1), 38-48.
46. Shafroth, F. (2014, September). Fracking's financial losers. Governing. Retrieved from http://www.governing.com/columns/public-money/gov-frackings-financial-losers.html
47. Smith, B. (2014, June 20). As Idaho's gas industry develops, concerns mount, Twin Falls Times-News.
48. Small, M., Stern, P. C., Bomberg, E., Christopherson, S. M., Goldstein, B. D., Israel, A. L., et al. (2014). Risks and risk governance in unconventional shale development, Environmental Science & Technology, 48(15), 8289-8297.
49. Spence, D., Stern, P. C., Bomberg, E., Christopherson, S. M., Goldstein, B. D., Israel, A. L., et al. (2013). Federalism, regulatory lags, and the political economy of energy production. University of Pennsylvania Law Review, 161, 431-508.
50. Spigelmyer, D. (2014, October 30). Tom Wolf's $1 billion myth. Press release. Retrieved from http://triblive.com/opinion/featuredcommentary/7054262-74/tax-energy-pennsylvania#axzz3Zg12ba00
51. Tietenberg, T. (2004). Environmental economics and policy (4th ed.) Boston: Addison-Wesley.
52. U.S. Census Bureau, Governments Division 2015. State government tax collections. Retrieved from http://www.census.gov/govs/statetax.
53. VanDeveer, S. (2013). Still digging: Extractive industries, resource curses, and transnational governance in the anthropocene. Washington, DC: Transatlantic Academy.
54. Warner, B., & Shapiro, J. (2013). Fractured, fragmented federalism: A study in fracking regulatory policy. Publius: The Journal of Federalism, 43(3), 474-496.