Regulatory Capture in a Resource Boom

Timothy Fitzgerald (Texas Tech University)

Abstract: State oil and gas regulators may be susceptible to capture by developing firms, especially during booms of resource development. Using data from state regulation to prevent waste in North Dakota, I provide empirical evidence that regulators serve well-organized interests in preference to diffuse general interests. The empirical analysis provides novel evidence of the mechanisms for regulatory capture by showing differences in regulatory responses across firms and locations.