Full Citation

Title: The Local Economic and Welfare Consequences of Hydraulic Fracturing

Citation Type: Journal Article

Publication Year: 2019

ISBN:

ISSN: 1945-7782

DOI: 10.1257/app.20170487

NSFID:

PMCID:

PMID:

Abstract: Exploiting geological variation and timing in the initiation of hydraulic fracturing, we find that fracking leads to sharp increases in oil and gas recovery and improvements in a wide set of economic indicators. There is also evidence of deterioration in local amenities, which may include increases in crime, noise, and traffic and declines in health. Using a Rosen-Roback-style spatial equilibrium model to infer the net welfare impacts, we estimate that willingness-to-pay (WTP) for allowing fracking equals about $2,500 per household annually (4.9 percent of household income), although WTP is heterogeneous, ranging from more than $10,000 to roughly 0 across 10 shale regions.

Url: https://www.aeaweb.org/articles?id=10.1257/app.20170487

Url: https://pubs.aeaweb.org/doi/10.1257/app.20170487

User Submitted?: No

Authors: Bartik, Alexander W.; Currie, Janet; Greenstone, Michael; Knittel, Christopher R.

Periodical (Full): American Economic Journal: Applied Economics

Issue: 4

Volume: 11

Pages: 105-155

Data Collections: IPUMS USA

Topics: Natural Resource Management, Other

Countries: United States