Abstract
ABSTRACT Methane is a greenhouse gas and the main constituent of natural gas. The Environmental Protection Agency (EPA)’s Quad-O regulates and limits the amount of methane emitted into the atmosphere during production. This study finds that Quad O’s short and long-run effects are minimal for equity holders and that its 2011 implementation did not systematically reduce returns, indicating that pollution abatement need not reduce wealth. To the degree shareholders were affected, upstream exploration & production and equipment & services were the only sectors affected by Quad-O.
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