Full Title: Institutional Choices for Regulating Oil and Gas Wells
Author(s): Lee Lane
Publisher(s): Hudson Institute
Publication Date: 2/2013

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Description:

The FRAC Act proposals raise a broader question.  In the regulation of oil and  gas development, what  should be the proper division of labor between Washington and the states in limiting harmful environmental side-effects?

The answers to four questions will largely determine the division of  labor that is most likely to maximize society’s welfare. First, do the environmental problems involve large trans-border effects? Second, would  uniform standards protect large network or scale economies in the  affected industry? Third, which level of government is likely to possess  better information? Fourth, is the federal government more attentive to  the public welfare than the states are?