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Price Regulation and Environmental Externalities: Evidence from Methane Leaks

Using data from natural gas distribution utilities on expenditures and volume of methane leaked, this paper estimates the amount of money utilities are spending to abate leaks. Expenditures are suboptimal at less than the cost of gas itself.

Working Paper by Catherine Hausman and Lucija Muehlenbachs — Jan. 31, 2018

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