Regional Economic Impacts of the Shale Gas and Tight Oil Boom: A Synthetic Control Analysis

Abdul Munasib () and Dan Rickman
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Abdul Munasib: University of Georgia

No 1410, Economics Working Paper Series from Oklahoma State University, Department of Economics and Legal Studies in Business

Abstract: The dramatic increase in oil and gas production from shale formations has led to intense interest in its impact on local area economies. Exploration, drilling and extraction are associated with direct increases in employment and income in the energy industry, but little is known about the impacts on other parts of local economies. Increased energy sector employment and income can have positive spillover effects through increased purchases of intermediate goods and induced local spending. Negative spillover effects can occur through rising local factor and goods prices and adverse effects on the local area quality of life. Therefore, this paper examines the net economic impacts of oil and gas production from shale formations for key shale oil and gas producing areas in Arkansas, North Dakota and Pennsylvania. The synthetic control method (Abadie and Gardeazabal 2003; Abadie et al., 2010) is used to establish a baseline projection for the local economies in the absence of increased energy development, allowing for estimation of the net regional economic effects of increased shale oil and gas production.

Keywords: regional economic development; energy boom; regional science; economic geography (search for similar items in EconPapers)
JEL-codes: Q32 R11 (search for similar items in EconPapers)
Pages: 47 pages
Date: 2014-07
New Economics Papers: this item is included in nep-ene and nep-geo
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Related works:
Journal Article: Regional economic impacts of the shale gas and tight oil boom: A synthetic control analysis (2015)
Working Paper: Regional Economic Impacts of the Shale Gas and Tight Oil Boom: A Synthetic Control Analysis (2014)
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