Previous estimates of the seismic energy released by lunar events have not properly accounted for instrument bandwidth, variations in corner frequency, and the effects of intense scattering. In this paper, equations are developed that include all of these effects and give realistic estimates for source parameters. These equations are applied to seismograms and displacement spectra from near-surface and deep moonquakes to obtain M0 (seismic moment), ?s (seismic energy release), Eyr (seismic energy released annually by each lunar event class), Δ&sgr; (stress drop), and mb (body wave magnitude). The calculations yield M0~3¿1021 dyn cm, ?s~2¿1717 ergs, Δ&sgr;~400 bars, and mb~5.0 for the largest shallow moonquakes; and M0~5¿1020 dyn cm, Es~1¿1013 ergs, Δ&sgr;~0.1 bars, and mb~3.0 for large deep events. The average energy released annually is Eyr = 2¿1017 erg/yr and Eyr = 8¿1013 erg/yr by shallow and deep events, respectively; overall, lunar energy release is dominanted by the shallow events. The energy released by the deep events may have accounted for by tidal dissipation, and deep event stress drops are comparable to and smaller than the calculated tidal stresses. A comparison of the above values with those observed terrestrially (Eyr~1025 ergs) and with the energy available from heat flow and tidal dissipation emphasizes the importance of tectonic style (e.g., plate tectonics) in determining the characteristics of plantetary seismicity.