Why Biden's Methane Fee Isn't a Gas Tax
An piece by a Bloomberg opinion columnist refers to RFF Fellow Brian Prest's work on methane fees and their costs to consumers.
Moreover, several analyses, such as those by the Boston Consulting Group or Levi Marks at the Department of Justice’s antitrust division, have shown abatement costs to be relatively minimal, especially when you factor in the positive contribution of selling the captured gas. One recent analysis by economist Brian Prest at Resources for the Future, an environmental think tank, building on Marks’ work, implies a $1,500 penalty might raise wholesale gas prices, net, by between 9 and 30 cents per thousand cubic feet, or just 1-3% of the EIA’s average residential price.
Incidentally, that’s around the 10 cent figure Souki threw out when admonishing the industry, urging it to just get it done and “let’s move on.”
