Tuesday, November 3, 2015

Dartmouth College Releases a Study Concerning the Economic Impacts of Shale Development at the County Level

In October 2015, researchers from the Dartmouth College released a study entitled “Geographic Dispersion of Economic Shocks: Evidence from the Fracking Revolution” for the National Bureau of Economic Research. The study addresses the economic benefits to the shale producing counties from shale development and their propagation within the regional economy.

In order to assess those benefits, researchers thoroughly analyzed the economic impacts of shale oil and gas development on income, employment and crime. For every million dollars earned from shale production, they estimated that it generates $66,000 in wage income, $61,000 in royalty payments, and 0.78 jobs within the producing counties.  

According to their results, the researchers concluded that “[f]irst, the counties where extraction occurs enjoy significant economic benefits. Second, the effects grow larger as we widen the geographic area being examined. The state-level impact on jobs and income is approximately five times as large as the immediate county effect with most of the impact happening within 100 miles of the drilling sites. Third, we find no significant change in crime rates.”

Written by Chloe Marie - Research Fellow


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