EPA’s 2016 Methane Rule: Should It Stay or Should It Go?

May 30, 2018 | Alan J. Krupnick, Justine Huetteman, Arthur G. Fraas


As part of a series examining US oil and gas sector regulations, this report analyzes the cost and benefits of repealing or modifying an EPA rule to regulate methane emissions under several scenarios.

Key Findings

  • We estimate net costs to society of repealing the rule would be $27 million to $152 million using a global social cost of methane.
  • Using the domestic social cost of methane, net benefits to society of repealing the rule are estimated at $285 million to $457 million.
  • We find that certain modifications to EPA’s methane rule, such as excluding certain types of wells and adjusting leak surveying frequency, increase net benefits of the rule but decrease overall emissions reductions.