The Local Economic and Welfare Consequences of Hydraulic Fracturing

Alexander Bartik (), Janet Currie, Michael Greenstone and Christopher Knittel

No 23060, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: 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.

JEL-codes: Q5 (search for similar items in EconPapers)
Date: 2017-01
New Economics Papers: this item is included in nep-ene
Note: EEE
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Citations: View citations in EconPapers (15)

Published as Alexander W. Bartik & Janet Currie & Michael Greenstone & Christopher R. Knittel, 2019. "The Local Economic and Welfare Consequences of Hydraulic Fracturing," American Economic Journal: Applied Economics, vol 11(4), pages 105-155.

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Journal Article: The Local Economic and Welfare Consequences of Hydraulic Fracturing (2019)
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