Fracking: the boost to US manufacturing

Rabah Arezki, Thiemo Fetzer and Frank Pisch

CentrePiece - The magazine for economic performance from Centre for Economic Performance, LSE

Abstract: Research by Rabah Arezki, Thiemo Fetzer and Frank Pisch shows that the surge in shale gas production - 'fracking' - since the early 2000s has not only made the United States the world's largest producer of natural gas. It has also given a big boost to output, employment, and exports in US manufacturing, particularly in energy-intensive industries. Their study finds that energy prices for US manufacturing firms have plummeted due to fracking, especially relative to Europe. Lower input costs for energy-intensive US industries have made them more globally competitive. What's more, the shale gas boom helped the US economy to recover faster after the financial crisis.

Keywords: manufacturing; exports; energy prices; shale gas (search for similar items in EconPapers)
JEL-codes: L71 N52 O13 Q33 R11 (search for similar items in EconPapers)
Date: 2016-12
New Economics Papers: this item is included in nep-ene
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Persistent link: https://EconPapers.repec.org/RePEc:cep:cepcnp:486

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