Economic impacts of early unconventional gas mining: Lessons from the coal seam gas industry in New South Wales, Australia
Thomas G. Measham and
David Fleming ()
Energy Policy, 2019, vol. 125, issue C, 338-346
Globally, the development of the unconventional natural gas (UNG) industry is expected to continue as gas consumption increases in the transition to cleaner energy sources. However, social and regulatory factors may constrain UNG activity at regional scales. Robust impact assessments of the effects of the UNG industry at different phases of development could help reduce trade-offs of energy policy and promote overall welfare improvements. We assessed if the early phases of the coal seam gas (CSG, a type of UNG) industry in New South Wales, Australia produced regional economic changes between 2001 and 2011. We combined spatial econometrics, genetic matching algorithms and seemingly unrelated regressions with instrumental variables to control for multiple factors influencing regional economic patterns (e.g., climate, human capital) to estimate the effect of the CSG industry on local income and employment. Results show that regions with CSG activity had 7% (±5%, 95% C.I.) higher family income than regions without CSG mining. No statistical evidence of indirect employment multiplier effects from CSG activity were found. The analysis can inform social license and regulatory decisions related to the CSG industry that impact competing social priorities such as energy and water security, economic growth and environmental health.
Keywords: Coal seam gas; Coalbed methane; Causal inference; Economic spillovers; Resource economics; Impact assessment (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eee:enepol:v:125:y:2019:i:c:p:338-346
Access Statistics for this article
Energy Policy is currently edited by N. France
More articles in Energy Policy from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().