Aggregate impacts of recent U.S. natural gas trends

Vipin Arora ()

MPRA Paper from University Library of Munich, Germany

Abstract: Predictions about the macroeconomic impacts of recent U.S. natural gas trends vary widely. I re-evaluate the possible effects on U.S. economic activity using a standard general equilibrium model. Within this framework I show that increases in natural gas supply result in small-to-moderate economic gains, even with unemployment or under-utilized capital. Subsequent rises in economy-wide productivity are the key to magnifying the economic impacts of greater natural gas supply and resources. The 1995-2000 period, where U.S. productivity growth was driven by information technology, is a good starting point for comparing how American productivity may evolve because of natural gas.

Keywords: Natural gas; general equilibrium; unemployment; variable capacity; shale; productivity (search for similar items in EconPapers)
JEL-codes: D24 E17 E27 Q43 (search for similar items in EconPapers)
Date: 2013-01-11
New Economics Papers: this item is included in nep-ene and nep-mac
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Citations: View citations in EconPapers (1)

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Related works:
Journal Article: Aggregate impacts of recent US natural gas trends (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:43708

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