The Local Economic and Welfare Consequences of Hydraulic Fracturing / Alexander W. Bartik, Janet Currie, Michael Greenstone, Christopher R. Knittel.

Format:

Book

Author/Creator:

Bartik, Alexander W.

Contributor:

National Bureau of Economic Research.

Currie, Janet.

Greenstone, Michael.

Knittel, Christopher R.

Series:

Working Paper Series (National Bureau of Economic Research) no. w23060.

NBER working paper series no. w23060

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2017.

Summary:

Exploiting geological variation within shale deposits and timing in the initiation of hydraulic fracturing, this paper finds that allowing fracing leads to sharp increases in oil and gas recovery and improvements in a wide set of economic indicators. At the same time, estimated willingness-to-pay (WTP) for the decrease in local amenities (e.g., crime and noise) is roughly equal to -$1000 to -$1,600 per household annually (-1.9% to -3.1% of mean household income). Overall, we estimate that WTP for allowing fracing equals about $1,300 to $1,900 per household annually (2.5% to 3.7%), although there is substantial heterogeneity across shale regions.

Notes:

Print version record

January 2017.