Poster Paper: Do Gas Flaring Laws and Policy Change IOC Behavior Regarding Gas Flaring and Associated Gas Use in Host Countries? Evidence from Country Case Studies

Thursday, November 6, 2014
Ballroom B (Convention Center)

*Names in bold indicate Presenter

Belinda Archibong, Barnard College

Negative environmental effects of gas flaring by international oil companies (IOCs) in particularly African host countries where the wasted gas has significant potential to be repurposed to meet pressing energy needs has motivated a series of regulations and policies designed to both reduce gas flaring and incentivize greater associated gas use to meet energy needs in these countries. This research will attempt to investigate the impact, if any, of these regulations and policies on changing IOC behavior regarding gas flaring and associated gas (AG) use in host countries, and specifically answer the question, “do gas flaring laws and policy change IOC behavior regarding gas flaring and associated gas use in host countries?” Among these host countries are 4 African countries: Nigeria, Angola, Equatorial Guinea and Congo Brazzaville which are the focus of the study due to their high rates of gas flaring and severe energy, particularly power, deficiencies. As comparison, we also examine gas policy effectiveness on IOC behavior in 6 non-African countries with notable gas-flaring including Russia, Kazakhstan, Canada, Mexico, Indonesia and Ecuador. Answering our research question is crucial for an understanding of the effectiveness of policies aimed at gas flaring reduction and incentivizing AG use in host countries. To our knowledge there has been no comprehensive study examining the impact of policy on IOC behavior regarding gas flaring and associated gas use in host countries and the results of our research will contribute to the much needed empirical literature on the subject. We employ a combination of quantitative and qualitative techniques, combining a traditional econometric regression framework with structured qualitative research to answer our research question.