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The economics of shale gas development

Mason, Charles F., Muehlenbachs, Lucija A. and Olmstead, Sheila M. (2015) The economics of shale gas development. Annual Review of Resource Economics, 7 (1). pp. 269-289. ISSN 1941-1340

Full text not available from this repository.
Identification Number: 10.1146/annurev-resource-100814-125023

Abstract

In the past decade, innovations in hydraulic fracturing and horizontal drilling have fueled a boom in the production of natural gas (as well as oil) from geological formations—primarily deep shales—in which hydrocarbon production was previously unprofitable. Impacts on US fossil fuel production and the US economy more broadly have been transformative, even in the first decade. The boom has been accompanied by concerns about negative externalities, including impacts to air, water, and quality of life in producing regions. We describe the economic benefits of the shale gas boom, including direct market impacts and positive externalities, providing back-of-the-envelope estimates of their magnitude. This article also summarizes the current science and economics literatures on negative externalities. We conclude that the likely scope of economic benefits is extraordinarily large and that continued research on the magnitude of negative externalities is necessary to inform risk-mitigating policies.

Item Type: Article
Official URL: http://www.annualreviews.org/loi/resource
Additional Information: © 2015 by Annual Reviews
Divisions: Grantham Research Institute
Subjects: G Geography. Anthropology. Recreation > GE Environmental Sciences
H Social Sciences > HC Economic History and Conditions
H Social Sciences > HD Industries. Land use. Labor
JEL classification: Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q3 - Nonrenewable Resources and Conservation
Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q4 - Energy
Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q5 - Environmental Economics
Sets: Research centres and groups > Grantham Research Institute on Climate Change and the Environment
Collections > Economists Online
Date Deposited: 12 Nov 2015 11:24
Last Modified: 20 Mar 2019 02:45
Projects: ES/K006576/1
Funders: Economic and Social Research Council
URI: http://eprints.lse.ac.uk/id/eprint/64413

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