NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

The Local Economic and Welfare Consequences of Hydraulic Fracturing

Alexander W. Bartik, Janet Currie, Michael Greenstone, Christopher R. Knittel

NBER Working Paper No. 23060
Issued in January 2017
NBER Program(s):Environment and Energy Economics

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.

You may purchase this paper on-line in .pdf format from SSRN.com ($5) for electronic delivery.

Access to NBER Papers

You are eligible for a free download if you are a subscriber, a corporate associate of the NBER, a journalist, an employee of the U.S. federal government with a ".GOV" domain name, or a resident of nearly any developing country or transition economy.

If you usually get free papers at work/university but do not at home, you can either connect to your work VPN or proxy (if any) or elect to have a link to the paper emailed to your work email address below. The email address must be connected to a subscribing college, university, or other subscribing institution. Gmail and other free email addresses will not have access.

E-mail:

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w23060

Users who downloaded this paper also downloaded* these:
Allcott and Keniston w20508 Dutch Disease or Agglomeration? The Local Economic Effects of Natural Resource Booms in Modern America
Keiser and Shapiro w23070 Consequences of the Clean Water Act and the Demand for Water Quality
Cascio and Narayan w21359 Who Needs a Fracking Education? The Educational Response to Low-Skill Biased Technological Change
Goodman w23063 The Labor of Division: Returns to Compulsory High School Math Coursework
Kahn and Zhao w23155 The Impact of Climate Change Skepticism on Adaptation in a Market Economy
 
Publications
Activities
Meetings
NBER Videos
Themes
Data
People
About

National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us