{
  "title": "How Should Shale Gas Extraction Be Taxed?",
  "publication": "IMF Working Papers, November 16, 2017",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2017/11/16/how-should-shale-gas-extraction-be-taxed-45410",
  "canonical": "https://www.imf.org/en/publications/wp/issues/2017/11/16/how-should-shale-gas-extraction-be-taxed-45410",
  "overlayPath": "/en/publications/wp/issues/2017/11/16/how-should-shale-gas-extraction-be-taxed-45410/index.md",
  "summary": "This paper suggests that the environmental and commercial features of shale gas extraction do not warrant a significantly different fiscal regime than recommended for conventional gas. Fiscal policies may have a role in addressing some environmental risks (e.g.",
  "sections": [
    {
      "heading": "Summary",
      "content": "- The paper concludes that the environmental and commercial features of shale gas extraction do not warrant a significantly different fiscal regime than recommended for conventional gas.\n- Fiscal policies can play a role in addressing some environmental risks (e.g., greenhouse gases, scarce water, local air pollution), though in some cases their net benefits may be modest.\n- Simulation analyses indicate special fiscal regimes are generally less important than other factors in determining shale gas investments, yet such regimes forego significant revenues."
    },
    {
      "heading": "Major findings",
      "content": "- Environmental and commercial features of shale gas extraction do not justify a substantially different fiscal regime compared with conventional gas.\n- Fiscal instruments may address environmental externalities:\n  - greenhouse gases\n  - scarce water\n  - local air pollution\n- In some cases, the net benefits of fiscal interventions to address environmental risks may be modest.\n- Special fiscal regimes for shale gas tend to forego significant government revenues while having limited impact on investment decisions relative to other factors."
    },
    {
      "heading": "Simulation analysis",
      "content": "- Simulation analyses suggest:\n  - Special fiscal regimes are generally less important than other factors in determining shale gas investments.\n  - There appears little need for special fiscal regimes given their limited influence on investment decisions.\n  - Special fiscal regimes forego significant revenues."
    },
    {
      "heading": "Policy recommendations",
      "content": "- Do not adopt substantially different fiscal regimes for shale gas solely because it is shale gas; align fiscal treatment with regimes recommended for conventional gas.\n- Use fiscal policies selectively to address measurable environmental externalities (greenhouse gases, scarce water, local air pollution), recognizing that net benefits may be modest in some cases.\n- Consider the revenue implications of special fiscal regimes, given simulations showing they can forgo significant revenues without materially altering investment incentives.\n\n---\n\n Content in this bundle\n\n- How Should Shale Gas Extraction Be Taxed?, WP/17/254, November 2017\n  - How Should Shale Gas Extraction Be Taxed?, WP/17/254, November 2017 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - How Should Shale Gas Extraction Be Taxed?, WP/17/254, November 2017 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2017/11/16/how-should-shale-gas-extraction-be-taxed-45410"
    }
  ],
  "bullets": [
    "[Markdown version](/en/publications/wp/issues/2017/11/16/how-should-shale-gas-extraction-be-taxed-45410/index.md)",
    "[Structured JSON version](/en/publications/wp/issues/2017/11/16/how-should-shale-gas-extraction-be-taxed-45410/index.json)",
    "[Bundle manifest](/en/publications/wp/issues/2017/11/16/how-should-shale-gas-extraction-be-taxed-45410/bundle-manifest.json)",
    "Authors: Philip Daniel, Alan Krupnick, Thornton Matheson, Peter J. Mullins, Ian W.H. Parry, Artur Swistak",
    "Published: November 16, 2017",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781484328491.001",
    "The paper concludes that the environmental and commercial features of shale gas extraction do not warrant a significantly different fiscal regime than recommended for conventional gas.",
    "Fiscal policies can play a role in addressing some environmental risks (e.g., greenhouse gases, scarce water, local air pollution), though in some cases their net benefits may be modest.",
    "Simulation analyses indicate special fiscal regimes are generally less important than other factors in determining shale gas investments, yet such regimes forego significant revenues.",
    "Environmental and commercial features of shale gas extraction do not justify a substantially different fiscal regime compared with conventional gas.",
    "Fiscal instruments may address environmental externalities:",
    "In some cases, the net benefits of fiscal interventions to address environmental risks may be modest.",
    "Special fiscal regimes for shale gas tend to forego significant government revenues while having limited impact on investment decisions relative to other factors.",
    "Simulation analyses suggest:",
    "Do not adopt substantially different fiscal regimes for shale gas solely because it is shale gas; align fiscal treatment with regimes recommended for conventional gas.",
    "Use fiscal policies selectively to address measurable environmental externalities (greenhouse gases, scarce water, local air pollution), recognizing that net benefits may be modest in some cases.",
    "Consider the revenue implications of special fiscal regimes, given simulations showing they can forgo significant revenues without materially altering investment incentives.",
    "**How Should Shale Gas Extraction Be Taxed?, WP/17/254, November 2017**"
  ],
  "related": [
    {
      "title": "How Should Shale Gas Extraction Be Taxed?, WP/17/254, November 2017",
      "role": "document",
      "sourceUrl": "https://www.imf.org/-/media/files/publications/wp/2017/wp17254.pdf",
      "summary": {
        "path": "/-/media/files/publications/wp/2017/wp17254.pdf.md",
        "mime": "text/markdown"
      },
      "binary": {
        "path": "/-/media/files/publications/wp/2017/wp17254.pdf",
        "mime": "application/pdf"
      }
    }
  ],
  "alternates": {
    "markdown": "/en/publications/wp/issues/2017/11/16/how-should-shale-gas-extraction-be-taxed-45410/index.md",
    "json": "/en/publications/wp/issues/2017/11/16/how-should-shale-gas-extraction-be-taxed-45410/index.json",
    "bundleManifest": "/en/publications/wp/issues/2017/11/16/how-should-shale-gas-extraction-be-taxed-45410/bundle-manifest.json"
  },
  "generatedAtUtc": "2026-09-18T12:30:39.546Z"
}