Recent advances in drilling technology promise significant benefits for the unconventional extraction of coal-seam gas (CSG). At the same time, the deployment of this technology raises serious concerns about its potential negative impacts on agriculture and the environment.
The speaker proposed a conceptual framework to help understand the issues surrounding CSG development, based on behavioral analysis using laboratory economic experiments.
The proposal focuses on the role of“security bonds,” deposited by a developer before beginning CSG extraction, which leads to better negotiation outcomes between developers and the owners of affected properties.
The "security bond" can be an effective policy instrument to mitigate environmental uncertainty in the context of CSG development.
Prof. Ancev holds a Ph.D. in Agricultural Economics from Oklahoma State University, United States. His main areas of research are environmental, agricultural, and natural resource economics, contributing to water economics and policy, air pollution economics, and climate change policy. He has published articles in the Journal of Regulatory Economics, Ecological Economics, Applied Economic Perspectives and Policy, and the Australian Journal of Agricultural Economics, among others.