U.S. Natural Gas Exports and their Global Impacts

Vipin Arora () and Yiyong Cai

CAMA Working Papers from Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University

Abstract: We evaluate potential global impacts of increase in U.S. natural gas exports as a result of the shale gas boom. To our knowledge this is the first such analysis using a global economic model to understand this timely policy issue. Our primary conclusion is that world economic activity is higher through most of the simulation period [2014-2035] when U.S. natural gas exports rise. The overall U.S. results mirror the global ones, but the magnitude of income gains depends upon how the rate of increase and level of exports are determined, and the price elasticity of natural gas supply. The U.S. benefits more when export increases and levels depend on natural gas production rather than when they are pre-determined by assumption. The economic impacts on other natural gas importers and exporters can change as well based on how export levels are determined. The effects on natural gas prices, consumption, and production in individual countries vary with the scenarios and model parameter values.

Keywords: natural gas; exports; shale; general equilibrium; international (search for similar items in EconPapers)
JEL-codes: E17 F47 Q31 Q43 (search for similar items in EconPapers)
Pages: 27 pages
Date: 2014-02
New Economics Papers: this item is included in nep-ene, nep-int and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (19)

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Journal Article: U.S. natural gas exports and their global impacts (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:een:camaaa:2014-22

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