Event Title
The Economic Impact of Shale Gas Development: A Natural Experiment along the New York and Pennsylvania Border
Location
Diamond 141
Start Date
1-5-2014 1:00 PM
End Date
1-5-2014 4:00 PM
Project Type
Presentation
Description
In the United States, the rapid increase in shale gas production has recently stimulated local economies. This paper provides an investigation of the regional economic impact of shale gas development. The border of New York and Pennsylvania provides a natural experiment for its economic impact because of the moratorium on fracking in New York and the supportive fracking regulations in Pennsylvania. Using BLS data from 2001-2013, results show that shale gas development has a statistically significant impact at the Natural Resources and Mining industry level, but not across the entire economy. Pennsylvania did not experience the boom phase at the industry level until two years after the rapid production of unconventional gas in the Marcellus Shale. The findings contribute new evidence to the economic benefits and the boom-bust cycle of shale gas extraction.
Faculty Sponsor
Michael Donihue
Sponsoring Department
Colby College. Economics Dept.
CLAS Field of Study
Social Sciences
Event Website
http://www.colby.edu/clas
ID
53
The Economic Impact of Shale Gas Development: A Natural Experiment along the New York and Pennsylvania Border
Diamond 141
In the United States, the rapid increase in shale gas production has recently stimulated local economies. This paper provides an investigation of the regional economic impact of shale gas development. The border of New York and Pennsylvania provides a natural experiment for its economic impact because of the moratorium on fracking in New York and the supportive fracking regulations in Pennsylvania. Using BLS data from 2001-2013, results show that shale gas development has a statistically significant impact at the Natural Resources and Mining industry level, but not across the entire economy. Pennsylvania did not experience the boom phase at the industry level until two years after the rapid production of unconventional gas in the Marcellus Shale. The findings contribute new evidence to the economic benefits and the boom-bust cycle of shale gas extraction.
https://digitalcommons.colby.edu/clas/2014/program/67