by Scott Loveridge

Abstract:
Natural gas proponents cite income and employment effects as reasons to support exploration and extraction in communities. Residents wonder about long-term consequences of the activity, and try to balance those unknowns against the benefits. This presentation reviews the issues and concerns, and presents new evidence of the short-term economic effects of natural gas extraction. The analysis takes advantage of a natural experiment along the Pennsylvania/New York border to estimate county-level economic effects. The presentation concludes with potential policy responses to the fracking opportunity.