Stochastic frontier analysis of total factor productivity in the offshore oil and gas industry

Shunsuke Managi, James J. Opaluch, Di Jin, Thomas A. Grigalunas

Research output: Contribution to journalArticle

30 Citations (Scopus)

Abstract

We examine the impact of technological change on oil and gas exploration, development and production in the Gulf of Mexico over the past five decades. We analyze the effect of technological change on the production frontier using a unique field-level data set covering 1947 through 1998. We then develop estimates of the growth in total factor productivity (TFP) in the industry at the regional level from 1976 to 1995. To address the unique features of this marine resource industry, we include in our models some key geological variables such as water depth and field size. In addition, the results reveal that environmental regulation had a significantly negative impact on offshore production, although such impact has been diminishing over time.

Original languageEnglish
Pages (from-to)204-215
Number of pages12
JournalEcological Economics
Volume60
Issue number1
DOIs
Publication statusPublished - Nov 1 2006

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total factor productivity
technological change
gas industry
oil industry
industry
marine resource
water depth
oil
gas
analysis
Oil and gas industry
Total factor productivity
Stochastic frontier analysis
Technological change
Industry
effect
regulation
gulf

All Science Journal Classification (ASJC) codes

  • Environmental Science(all)
  • Economics and Econometrics

Cite this

Stochastic frontier analysis of total factor productivity in the offshore oil and gas industry. / Managi, Shunsuke; Opaluch, James J.; Jin, Di; Grigalunas, Thomas A.

In: Ecological Economics, Vol. 60, No. 1, 01.11.2006, p. 204-215.

Research output: Contribution to journalArticle

Managi, Shunsuke ; Opaluch, James J. ; Jin, Di ; Grigalunas, Thomas A. / Stochastic frontier analysis of total factor productivity in the offshore oil and gas industry. In: Ecological Economics. 2006 ; Vol. 60, No. 1. pp. 204-215.
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