CASPER - Wyoming stands to benefit from federal cap-and-trade legislation now before Congress, according to research conducted by a University of Wyoming graduate student.

Milton Geiger said the state probably would receive more energy-based revenues under the plan because the effort to reduce greenhouse gas emissions probably would spur natural gas production and wind energy while also supporting technologies to curb emissions from coal.

Energy department data

Geiger created the policy model based on data generated by the U.S. Department of Energy.

"Because Wyoming is a leader in energy, it could consider this legislation an opportunity to place more of an emphasis on extracting cleaner energy provided by natural gas with this added economic incentive and better position itself, from a policy standpoint, to be a leader in investing in and developing renewable wind energy," Geiger said in a UW media release on Monday.

Geiger received a dual master's degree from UW's Department of Agricultural and Applied Economics and the Haub School of Environment and National Resources. He recently presented his research at the 2009 Western Agricultural Economics Association conference in Hawaii.

The U.S. Senate recently took up legislation passed by the U.S. House in June. The bill would establish a cap-and-trade system whereby factories, utilities and refineries would pay for the right to emit carbon dioxide and other greenhouse gases.

Some members of Congress, including Wyoming's all-Republican delegation, have argued against the bill, contending that it could lead to higher energy prices for consumers and snuff thousands of Wyoming jobs tied to fossil fuel extraction.

Geiger's research suggests Wyoming's natural-gas production would actually increase under the current proposal to reduce CO2 emissions by 20 percent by 2020 and 83 percent by 2050, from 2005 levels.

State revenue taxes

"The issue that Milt's work emphasized is that state tax revenues depend on what mix of energy the policy generates, and how that energy source is effectively taxed," said Roger Coupal, Geiger's academic adviser and head of the UW Department of Agricultural and Applied Economics, in the release.

Sen. John Barrasso, R-Wyo., was not available for comment Monday afternoon. He previously has decried the cap-and-trade approach to reducing greenhouse gas emissions.

"Demand for energy will only increase. We should focus on developing all of America's abundant resources. Picking energy winners and losers is not the right course," Barrasso said in a Sept. 22 media release.

Barrasso went on to say that the nation should make energy as clean as possible as quickly as possible, but "without raising prices on American families."

Wyoming produces about 6.5 billion cubic feet of gas daily - enough to serve about 65,000 homes for one year. Natural gas contributed an estimated $1.5 billion in state revenues in 2008, according to local officials.

Wyoming's coal-mining industry contributed an estimated $852 million to state and local governments in 2007, according to the Wyoming Mining Association.

Geiger noted that the UW is engaged in multiple efforts of coal gasification, carbon capture and carbon sequestration research - efforts that the current cap-and-trade bill would help fund.

UW, along with the state, the federal government and industry, are working cooperatively on these technologies in Wyoming to ensure coal can remain viable under a cap-and-trade system.

Contact Dustin Bleizeffer at 307-577-6069 or dustin.bleizeffer@trib.com.