Sunday, August 27, 2023

Why shale-oil drilling in the US, but not in Europe?

If you give people secure property rights, they have the incentive to move the property to its highest valued use:
'Whoever owns the soil, it's theirs up to Heaven and down to Hell." So goes the ancient common-law principle. Today, however, almost no major country recognizes full subsurface private property rights, except for the United States.


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  2. Who is making the bad decision? U.S. Property owners in North Dakota.
    Does the decision maker have enough information to make a good decision? Presumably, information about climate change is readily accessible.
    Does the decision maker have the incentive to make a good decision? No. The property owner is has the incentive to pursue profits. A reduction in the value of fossil fuels as a result of green technology could change the decision maker's behavior.